Was there a catalyst that lead to this? Bad luck? Neighboring countries exploiting previous agreements?
In: 9
It’s a result of a few key things. They tied their currency to the dollar in the late 90s and early 2000s, which led to a massive debt default in 2001. This put them in a financial hole they’ve been struggling to climb out of.
Add to this, they’ve been dealing with high inflation rates because the government’s been printing pesos like there’s no tomorrow, causing the currency to lose its value.
There’s also been a fair share of corruption, which has led to mistrust and unstable economic policies. It’s a mix of bad decisions, really bad economic management and bad luck.
Note: I’m not siding with any particular political viewpoint. These economic issues are complex and there are many factors at play, including decisions made by various administrations over the years.
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