Why is the economic crisis in Argentina so serious? How can the present and continuing depression be explained? The recession in the economy has persisted for three years, twice the traditional length of cyclical contractions. The fall in investment affects all sectors and the gross domestic product has fallen by 4.3 per cent from the beginning of 1998.

In recent years, the traditional vulnerability of the Latin American economy has sharpened in the face of diverse international crises. The recovery from the 'lost decade' of the 1980s (the decade which began with the thunderclap of the Mexican debt crisis in 1982) has been of short duration.