The Argentine economy is going through a severe recession. Some wonder what is needed to revive credit, consumption, and investment.
In a country with a history of economic crises, exploring past episodes can reveal clues. The rural boom at the beginning of the new century brought with it resources that expanded throughout the economy. The Marshall Plan transferred massive amounts of dollars to Western Europe, financing investments that represented between 3% and 25% of the GDP of the recipient countries. In post-war Europe, with economically devastated countries and disjointed productive and financial sectors, economic recovery depended largely on the flow of external capital. The countryside is the only sector that can provide the necessary liquidity to reactivate the level of activity and get the Argentine economy out of its current crisis.