Question

Name one similarity and one difference to the Argentinean currency crisis of a few years ago to the Euro based on the Greek crisis over the last year.

Answer 1

Similarity in Argentinean currency crisis of a few years ago to the Euro based on the Greek crisis over the last year:

Both Argentina and Greece faced several years of hardship and austerity. They borrowed heavily from I.M.F, USA and the World Bank. Then all of them asked for infamous spending cut.For both Argentina then and Greece now, I.M.F withheld payments when both of them failed to meet their respective defecit targets.

Difference in Argentinean currency crisis to the Greek crisis :

Argentina's economic recovery was majorly driven by a timely surge in commodity exports mainly driven by demand from China and Brazil. Unlikely, Greece is heavily depends on import. Crude oil, refined petroleum and pharmaceuticals are major imports for them. As they don't export much, leaving EU and bringing its old currency drachma, tourism might had given some gain. However as overall revenue didn't grow, gains from tourism didn't help much. Leaving Euro also could bring devastating result from different sides.It is feared that Greece might face more adversity than Argentina finally.