Lessons from the 1998-2002 Argentine Economic Crisis for Todays Latin American Economy

This paper analyzes the reason of the Argentina Great Depression in the 1990s and compares it with the 21st century Latin American economic crisis. The causes of the Argentina Great Depression serve as a remarkable alarm towards the current situation of the Latin American economy. The Latin American economy is currently facing surging inflations, mounting external debts, and unpredictable external shocks. Hence, there are many lessons that can be drawn from the Great Depression to Latin American countries and potential strategies that could alleviate the devastating impact on the economy. This paper first compares the economic situation and fiscal policies of Argentina and Latin America. Then, the paper analyzes the distinct rehabilitation process of the Argentine government and evaluates the steps that are applicable to the Latin American economy. Finally, this paper suggests on the rehabilitation process that Latin American country could take in recovery and revive its economy back to prosperity.