THE ARGENTINA ECONOMY 1992-2003 A LOOK AT THE FAILURE OF A SMALL ECONOMY WITH FIXED EXCHANGE RATE AND PERFECT CAPITAL MOBILITY

Abstract

The Argentine Republic, happened to be one of the nations with greater relative development of Latin America, at the beginning of the decade of ochentas, to have one of the pictures of inequality near the poor averages of the most inequality region of the planet. In these lines explained, the economic mechanism of the box of convertibilidad, in a small economy with perfect mobility of capitals, and like the financing with external debt of the balance of payments, he was essential to originate the economic phenomena that precipitated the devaluation and the social chaos of the 2001-2002. From the Keynsian model, some of the applied policies will be explained, with the purpose of giving to the reader tools to understand, the strong backward movement in terms of income and industrialization, that the Argentina economy lived in the decade on noventas.