Which factors are related to the collapse of the Argentine currency board system and ensuing economic crisis?
A)The lack of fiscal discipline on the part of the Argentine government
B)Labor market inflexibility
C)Contagion from the financial crises in Russia and Brazil
D)all of the options

Question

Quizplus · Accepted Answer

All of the options are related to the collapse of the Argentine currency board system and ensuing economic crisis. The lack of fiscal discipline on the part of the Argentine government led to excessive government spending and high fiscal deficits. Labor market inflexibility resulted in high unemployment, low productivity, and reduced competitiveness. Contagion from the financial crises in Russia and Brazil caused capital flight and reduced investor confidence in the Argentine economy.

Which Factors Are Related to the Collapse of the Argentine