Argentina (2001 crisis)

The Argentine crisis of 2001 was a severe economic collapse characterized by high unemployment, poverty, and social unrest. It stemmed from years of economic mismanagement, including excessive public borrowing and a fixed exchange rate that tied the peso to the U.S. dollar. When confidence waned, banks froze accounts, leading to widespread protests. In December 2001, the government defaulted on its debt, sparking a financial crisis. The subsequent political turmoil resulted in multiple government changes and deepened financial instability, ultimately leading Argentina to abandon the peso-dollar peg and implement significant economic reforms.