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Argentina's 2001 Default: Foreign Policy Considerations And Consequences, Joshua K. Alley

Celebration

Argentina’s 2001 default was at the time the largest in history, with the Peronist government of Adolfo Rodriguez Saa declaring a cessation of payments on over 80 billion dollars in government bonds. Historically, the political science and economics literatures have emphasized the economic considerations surrounding the decision to default. Recent literature has explored the political motivations for default, but there has been little scholarship on the possible political consequences of default. Some authors have emphasized that default can have important audience costs for leaders, but other issues have been left unexplored. However, it is clear that Argentina’s 2001 default had …