In 1999 – 2001 , Argentina experienced one of the worst economic crises in their history. GDP output fell tremendously, inflation skyrocketed, high unemployment, the government default in its debt, the banking system was almost about to collapse, and the Argentine peso which was pegged at par with the US dollar, reached lows of Arg $3. 90 per US dollar. This crisis had a major impact on the international economy as well. Countries that were investing in Argentina because of their stable economy and their peg with the US dollar, started to leave and to take all their money with them.
Argentina is an interesting country to analyze because even though they are full of potential and have plenty of raw material to work with and export to the rest of the world, their politicians always find the way to create policies that instead of helping them, make it worst. In this paper we are going to analyze all the different policies that helped Argentina to come to this crisis, we are going to analyze the banking system, their reasons for defaulting on their debt, GDP output, inflation, and unemployment, the Argentine peso which was pegged to the US dollar and what policies they adopted to solve the crises.
Argentina’s Economy Minister Domingo Cavallo introduced the system of peso convertibility in 1991, which stated an exchange rate of one peso one dollar. This policy helped Argentina to bring inflation down from 84% in 1991 to 7. 3% in 1993. With this rapid recover, Argentina was a model of successful economic reform to imitate. Their economy was stable and growing. Inflation was in single digits, output was growing tremendously, and the economy had managed to beat the Mexican Tequila crisis in the mid-1990s.
Investors started to see good opportunities and foreign capital started to flow into the country, ontributing to an acceleration of economic growth. Additionally, during 1997, Asia started with their crisis, which raised fear of a worldwide economic collapse due to financial contagion, so investors withdrew their capital and moved it to Argentina. In 1998, Brazil ended their own peg with the US dollar, which resulted in a strong depreciation of their currency. This helped their economy to recover fast, since their products were very cheap and they were able to export at very competitive prices.
The problem was that it affected Argentinean economy as well, because it reduced he competitiveness of Argentine producers, leading to a decrease on their exports. As a result, foreign investors and buyers found that their dollars could buy more in Brazil than in Argentina, so they started to get their investments out of the country and foreign capital started to move out to Brazil, leaving the Argentinean banking system in a difficult situation. Another major issue that helped with the creation of the crisis was the extensive borrowing done by the government of Menem in his second term.
Instead of bringing dollars by exporting domestic products, the overnment was borrowing from the World Bank, creating a huge debt that was impossible to pay back. By acquiring this debt, domestic interest rates started to grow, and the more the government was borrowing, the more the interest rates grew, and the more expensive was tor businesses to borrow trom the bank, making a lot ot companies to close for bankruptcy. Domestic inflation started to grow slowly again, making production cost very expensive to compete internationally.
At this point, it was easier to import products from abroad than to make them home, replacing the domestic market. In Menem’s first term in 1990s, he started with a wave of privatization that created a lot of unemployment, and with the extensive borrowing and the huge debt that made interest rates to go up, created a spiral of expensive products, businesses to close, and GDP to decline, which created more unemployment, rising from 12. 4% in 1998 to 23. 6% in 2003. The government tax revenues were shrinking, and each day with more people layoff, Argentineans were depending on government subsidies.
The poverty rate rose from 25. 9% in 1998 57. 5% in 2002 and in real terms, adjusted for inflation, wages fell 23. % in 2002. By 2000, Argentina was clearly struggling with the economy. The international debt was enormous, and the government needed to act on it. There were several possibilities to reduce the deficit, but none of them seemed to be correct for President De La Rua. The different options presented were either cutting government spending, cutting tax rates, printing more money, or keep extending the foreign debt, but none of these options were viable for the president.
So, he decided to raise tax rates, called the “impuestazd’. This new raise in taxes where a sequence of three big tax increases, ffective January 2000, April 2001, and August 2001. The problem with this new policy was that taxes in Argentina were already high, so it only encouraged taxpayers for more corruption and evasion, plus it reduced confidence by discouraging growth in the private sector, which was the major source for the government’s tax revenues. The president also imposed taxes on exports, which made Argentinean exports even less competitive. Therefore, there were no sign of recovery.
On April 2001, Cavallo introduced a bill to switch the peg of the peso with the US dollar to a 50-50 combo of dollar and euro. The new policies instead of helping the economy, made it worst. The changes in monetary policy reduced confidence in the currency, and interest rates raised substantially, even those interests in dollars, because it made it very costly for businesses to get loans from the bank, which contribute to the recession even more. Investors’ abroad and Argentinean society started to see this proposal as a small step toward devaluation, interest rates shot up and the “silent run” on banks began.
President The La Rua started to lose support. By November 1, 2001 Argentina refinanced part of their debt. By doing this they were able to pay smaller amounts of money in the short run at the expense of higher payments in the long run. In that same year, the Economy Minister also imposed a new policy called Zero Deficit Law in order to cut government spending. As a result, Argentinean provinces did not receive money so they started to print their own money called “patacones”, which were used as money, but in reality they were “bonds” that were discounted in the market.
By the end of November 2001 , people were rushing to the bank to take out their money because of the fear for devaluation. On December 1, 2001 the government declared a reeze on bank deposits called “el corralito”, meaning that people could not take out their money from the bank. They had a maximum of $1,000 pesos per month. By doing this, the government confiscated part of the savings of bank depositors to finance itself and pay some foreign debt. The economy turned from a recession to a great depression.
Additionally, they were not tultllling the targets ot the loan agreement to the IMF, so on December 5, 2001 the International Monetary Fund announced that they were cancelling the installments of a stand-by loan that had been approved in September. As a result, Argentina was not only in a great depression but they were also having trouble to get financial help from abroad. On December 13, 2001 Argentineans came out to the street in sign of protest for the “corralito”, the economy, and the president, resulting in 24 deaths.
Strikes kept going for some days, until finally the Economy Minister Domingo Cavallo resigned on December 19th and President the La Rua followed him the next day. Adolfo Rodriguez Saa came to power but he lasted only a few weeks. He decided to default on the foreign private sector lenders and wanted to issue a second national currency n parallel to the peso, so Argentineans went on the streets again as a sign of protest against his policies. On January 1, 2002, Congress chose as President Eduardo Duhalde to serve the rest of former president The La Rua’s term.
From 1991 to 1999, Duhalde has been the governor of Buenos Aires province, the richest in the country. He was known as a big spender. Before becoming governor, he was Menem’s vice president from 1989 to 1991. President Duhalde wanted to change the convertibility policy, convinced that it was going to help the recession. He thought that by devaluing the peso, Argentine exports were going to be competitive again, elping the economy to recover. On January 6, 2002, the Law of Public Emergency and Reform of the Exchange Rate Regime went into effect. This was the end for the convertibility system, and the peso devalued to $1. pesos per US dollar, and later floated the exchange rate, allowing further depreciation. Bank deposits that were before in dollars were changed into pesos with the exchange rate of $1. 4, and interest rates were frozen at pre devaluation levels. This new policy was called “pesificacion”. Bank deposits were also prolonged, which became known as the “corralon”. They also imposed exchange controls, meaning that people could not hange pesos to other currencies freely. The government also imposed new taxes and regulations, and charge double penalties for employers who lay off employees.
The government new policies helped tremendously for the recovery of the economy. The idea was to change the influence of the government in the economy from the last couple of years to a more free market, greater respect for property rights, and more predictable policies in order to create a stable economy. Articles 14 and 17 guarantee the right to private property and require the government to compensate property owners for takings, meaning that during the crisis, people who ot mortgages in dollars had to pay the equivalence of the exchange rate at the time that was $3 pesos per dollar.
So, the government ended up making a deal with these types of loans. They had to pay instead $1. 4 pesos per dollar in their mortgage and the government paid the difference. Argentina took a lot of time to recover. Even after all the new policies, the economy was still very weak. Unemployment and poverty kept rising in 2002. The percentage of Argentineans below the official poverty line rose from 38. 3% in 2001 to 57. 5% in 2002. It was estimated that about 40% of the opulation was living with only $1 peso per day, and about 20% of the population was living with only $2 pesos per day.
Producers trying to export were also having difficulties to get loans from the bank since lenders were afraid of the political ty and turtner confiscation ot their savings. By the end ot 2 economy finally saw some improvements. The exchange rate was stable and had even appreciated. Consumer price index was increasing to about 40% in the late 2002 and inflation was down to 3. 7%. Unemployment was finally declining to about 15% down from 23% in 2002 and businesses were expanding. By April 2003 the government removed the bank deposit freeze.
On May 2003, Nestor Kirchner became the president of Argentina. Fiscal policies started to work and with an increase on tax revenues, the government was able to refinance their debt with the IMF. Investments started to grow again, which helped tremendously the economy to recover, and consumer spending was still increasing in 2003. Bank deposits finally saw some improvements too since people started to gain political trust and started to see signs of stability. Private deposits grew from $57. 5 billion pesos in 2002, to $69. 5 billion pesos in 2004.
How are nurses’ held accountable for their practice?
How are nurses’ held accountable for their practice?.
Please have a look in the attached file for instructions. Following are additional set of instructions to help construct your essay. Please have a look in attached files for more instructions about assignment and marking guide • This paper will discuss nurse’s accountability from three different areas of accountability • 500 words for each example some good examples to use • Accountability towards consent or physical or chemical restraint • Scope of practice • Example 1 delegation responsibilities lto student nurses as RN • Example 3 practicing in their educational capacity • Relate to code of conduct and nursing standards Aphra and nursing board • Current literature 5-8 years preferably 5 • Accountability interest mostly related to nurses not specifically medication administration • Refer to standard instead of lifting it. • This is reflected in this standard or code of conduct- example instead of describing it. It does not even have to be about mentioning the numbers could be like under bullying or harassment. You have no original thoughts so don’t give your own examples. You need literature to support your examples if you do put them in
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