Imagine one of the ten richest countries in the world working hard to collapse financially
Juan Bautista Alberdi, the father of Argentine constitution, could not have been more apt. He had very appositely asserted that all the crises that Argentina went through resembled each other in the fact that all were driven by irresponsible fiscal policies, which in turn were caused by weak or lacking institutions. It is more of an irony that by 1913, a country, which had been growing at 5% and was amongst the ten richest countries ahead of Germany and France, ended up as the very ocean of crises. All thanks to the fiscal imbalances, a crisis summary of Argentina reveals that the country has the propensity of a crisis every 3.7 years.
Post World War I, though Argentina had current account surpluses with European nations, its deficit with the new economic power US affected it in 1920-21when the British pound lost 25% of its value against the US dollar. Once again, the significant and persistent budget deficits caused much of the misery. “The Argentine economy suffered because the British supply of financial services proved to be unreliable at a time when international capital markets had dried up,” agree G. D. Paolera and A. M. Taylor, National Bureau of Economic Research.
Juan Bautista Alberdi, the father of Argentine constitution, could not have been more apt. He had very appositely asserted that all the crises that Argentina went through resembled each other in the fact that all were driven by irresponsible fiscal policies, which in turn were caused by weak or lacking institutions. It is more of an irony that by 1913, a country, which had been growing at 5% and was amongst the ten richest countries ahead of Germany and France, ended up as the very ocean of crises. All thanks to the fiscal imbalances, a crisis summary of Argentina reveals that the country has the propensity of a crisis every 3.7 years.
Post World War I, though Argentina had current account surpluses with European nations, its deficit with the new economic power US affected it in 1920-21when the British pound lost 25% of its value against the US dollar. Once again, the significant and persistent budget deficits caused much of the misery. “The Argentine economy suffered because the British supply of financial services proved to be unreliable at a time when international capital markets had dried up,” agree G. D. Paolera and A. M. Taylor, National Bureau of Economic Research.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
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