Argentine Economic Crisis 1998-2002 Abstract During the east Asian crisis of 1997, Argentina was being referred to as a model state because of its fixed exchange rate regime. However, by 2001, due to several macroeconomic reasons the economy had collapsed. It is now clear that Argentina will reverse at least some of the economic reforms introduced by president Carlos Mennen in the early 1990s to survive the crisis it is currently experiencing. That small and open economies are far more susceptible to large external shocks, such as changes in foreign interest rates, terms of trade, regional contagion effects, etc, is among the many lessons of the Argentine crisis. Argentina : The Country Argentina is a massive South American nation with terrain encompassing Andes mountains, glacial lakes and Pampas grassland, the traditional grazing ground of its famed beef cattle. The country is famous for tango dance and music. Its big, cosmopolitan capital, Buenos Aires, is centered on the Plaza de Mayo, lined with stately 19th-century buildings including Casa Rosada, the iconic, balconied presidential palace. Argentina : The Economy The economy of Argentina is an upper-middle income economy for fiscal year 2016 according to World Bank Latin America's third largest, and the second largest in South America behind Brazil. The country benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Argentina's economic performance has historically been very uneven, in which high economic growth alternated with severe recessions, particularly during the late twentieth century, and income maldistribution and poverty increased. Early in the twentieth century Argentina had one of the highest per capita GDP levels in the world and the third largest economy in the developing world. Today a high-income economy, Argentina maintains a relatively high quality of life and GDP per capita. Argentina is considered an emerging market by the FTSE Global Equity Index, and is one of the G-20 major economies. Economic History of Argentina Argentina possesses definite comparative advantages in agriculture, as the country is endowed with a vast amount of highly fertile land. Between 1860 and 1930, .