In late 2001, Argentina's economy and society as on the verge of collapse. Furious about the controls imposed on the convertibility of their bank deposits in cash ("Corralito") and a huge government spending cuts proposed in the context of high levels of unemployment and the deterioration of social services, the Argentines from all economic backgrounds took to the streets in protest. In violent unrest, shops were looted, burned buildings, and more than 22 people killed. All the government was forced to resign. Consistently increasingly inefficient presidents mixed in the presidential palace, each seemingly more powerless to resist the crisis than the last. Meanwhile, the economic situation continued to deteriorate, and soon Argentina defaulted on $ 141 billion in foreign debt in the largest sovereign default in history. January 2, 2002, Eduardo Duhalde was elected interim president of the Congress of Argentina - and will serve as the fifth president of Argentina for two weeks. At the helm of Argentina's economy swinging, he held a number of important decisions to make. Among them were, what to do with the ten dollar anchor Argentina under Convertibility Plan. "Hide
by Rafael Di Tella, Ingrid Vogel Source: Harvard Business School 20 pages. Publication Date: October 27, 2003. Prod. #: 704004-PDF-ENG
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