In the last decade Argentina has suffered recurring economic problems of inflation, high external debt, capital flight, and budget deficits. Growth in 2000 was a negative 0.5%. Domestic and foreign investors were skeptical of the government's ability to pay debts and also maintain the peso's fixed exchange rate with the US dollar. The economic situation begins to worsen in 2001 because of the wide spreads on Argentine bonds, the banks with draws were outrageous, and consumers and investors were not confident with the economy situation. This happen in the fall of 2001, the economy was a disaster with the debt problems that caused such a major panic. The government also clamped down on capital movements causing Argentina to hurt m
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