Question

explain the main similarities and differences between the Argentina crisis in 1990s and turkey crisis in...

explain the main similarities and differences between the Argentina crisis in 1990s and turkey crisis in 2001

Homework Answers

Answer #1

Difference between Argentina crises 1990s and turkey crises 2001 is

  • Argentina crises in 1990s was caused due to pro cyclical fiscal policy and excessive foreign borrowing lead the country to face the problem of economic shocks. While turkey crisis in 2001 was caused due to the weak banking system and slow economic reforms resulted in the problem of fall in capital inflows due to which currency and banking crises has to be faced by the country

Similarity between Argentina and turkey crises-

  • Both were caused due to slow economic reforms
  • Both crises resulted in currency crises within the country
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