In an effort to undo a decade of hyperinflationary chaos, culminating in the street riots of the late 1980's, Argentina embarked on a new economic plan which involved the adoption of an economic model promising efficiency and growth without the wealth destroying effects of rapid inflation.  By 1998, Argentina was in recession again, the government deficit rising as it borrowed more to maintain its level of spending while its tax revenues shrunk and delinquencies rose.  On December 12, 2001, Argentina defaulted on loans to its creditors- a sovereign nation had declared itself bankrupt.

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