Case | HBS Case Collection | December 2013 (Revised August 2015)

Breaking Bad (the Rules): Argentina Defaults, Inflates (and Grows), 1997–2015

by Rafael Di Tella and Fernanda Miguel


In late October 2011, after losing 1 billion of dollar reserves in one month, the Argentine government began imposing a series of currency controls, limiting the ability to buy foreign currency. As of October 2011, Argentina's tax collection agency AFIP had been granted the power to approve or reject all requests to buy dollars with pesos in Argentina's banking system. By June 2012, AFIP had removed "saving" as a legitimate explanation. While the official exchange rate was approaching six pesos to the dollar, the black market was demanding almost ten pesos to the dollar—a nearly 65% difference. These were not the first currency restrictions that Argentina had imposed on its citizens.

Keywords: Default; inflation; Inflation and Deflation; Argentina;


Di Tella, Rafael, and Fernanda Miguel. "Breaking Bad (the Rules): Argentina Defaults, Inflates (and Grows), 1997–2015." Harvard Business School Case 714-036, December 2013. (Revised August 2015.)