The continuing inability of the government to live within its means is the principal contributing factor for the current and past economic problems in Argentina. In years past, the Argentine government simply issued money to cover its deficits which led to rampant inflation.What caused the economic decline of Argentina?
A strong peso hurt exports from Argentina and caused a protracted economic downturn that eventually led to the abandonment of the peso-dollar parity in 2002. This change, in turn, caused severe economic and political distress in the country.What happened to Argentina's economy?
Beginning in the 1930s, however, the Argentine economy deteriorated notably. The single most important factor in this decline has been political instability since 1930, when a military junta took power, ending seven decades of civilian constitutional government.