Argentina's Convertibility era (1991-2001)
Argentina pegged the peso one-to-one to the U.S. dollar to kill hyperinflation. The strong peso made Buenos Aires costly for tourists and locals alike, straining dining and travel. The peg ended in a 2001-2002 default and devaluation.
Inflation fell sharply, but exports and tourism grew uncompetitive and unemployment rose.
The peg's collapse triggered a banking crisis and one of the largest sovereign defaults in history.
A strong peso again makes Argentina expensive and squeezes dining out. The current story tests softer tools, like tax cuts, before pressure builds.
