Response Essay 1

Response Essay 1 - Carter Whittington Response Essay 1...

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Carter Whittington Response Essay 1 Recently in Argentina, the worst drought in over 50 years has caused many people to worry about the kind of impact it will have on the country’s economy. The country already faces an 18 million dollar debt and this drought isn’t making anything any easier. According to the article, Argentina is in an “agricultural state of emergency” and has to act soon. One of the major impacts of this drought on the economy is something that we talked about in class, inflation. This is caused by the excess supply of the country’s currency, thus depreciating its value, and in turn adding pressure on the government to take money out of Argentina’s Central Bank. This would, however, weaken the exchange rate, devaluating the currency even more and worsening the economy. Another affect that the drought has had on the worsening economy in Argentina is that it has greatly reduced agricultural and livestock production and, thus, profits from exports. Experts there foresee a
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This note was uploaded on 12/08/2011 for the course RELI 103 taught by Professor Smith during the Fall '07 term at UNC.

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Response Essay 1 - Carter Whittington Response Essay 1...

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