Even under the monetary arrangements of the 1990s that prevented the financing by the central bank of fiscal deficits, imbalances led to indebtedness crisis, which ended up affecting the whole economy, including the financial system.
The sound macroeconomic fundamentals the region stands on today contribute to generate a stable economic framework and work towards the goal of avoiding the “fiscal dominance” of past decades based upon the implementation of countercyclical and flexible macroeconomic policies. Regarding the Argentine financial system, while the recovery from the crisis occurred at a remarkable pace, there are still some outstanding tasks for the medium-term.