In the early 1990s, a convertibility plan (including a fixed exchange rate with the dollar) helped to rid Argentina of hyperinflation and boosted confidence in its economy. But by the late 1990s, the fixed rate had priced Argentine goods out of regional and global markets. As a result, Argentina developed a huge trade deficit, which contributed to the weak domestic economy, reduced tax revenue and worsened budget deficit noted by Mr. [Paul Blustein].
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