How_Money_Works_-_The_Facts_Visually_Explained

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GOVERNMENT FINANCE AND PUBLIC MONEY

Why governments fail financially

Borrowing

increases

DEBT

GROWS

Borrowing

increases

DEBT GROWS

7. Argentina’s
   repayments are
   still too small to
   control rising
   levels of debt.
   3. Its repayments
   fail to bring the debt
   under control.


8. The countries it has
   borrowed from lose
   faith in Argentina’s
   ability to pay.


9. Argentina
   borrows heavily
   from elsewhere
   in the world.

$

$

$ $$

$

DEBT

8. Argentina fails
   to meet conditions
   set out by the IMF


9. The IMF on deficit targets.
   withdraws its
   economic support.


10. The value
    of the peso
    plummets.


11. A run on the
    banks leads to the
    government
    freezing deposits.


12. Argentina
    cannot repay its
    US$120 billion
    debt, and defaults.


13. Argentinian
    unemployment
    reaches 20%.


14. Civil unrest
    and rioting break
    out.

Argentina

defaults

15. A period of
    political instability
    sets in.
    16. Agreements
    on repayments
    in 2002 help
    promote a boom.
    Argentina

e

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te

r

s

a

d

e

b

t

s

p

i

r

a

l

$

€ 107 billion

amount of Greek debt

written off i n 2012

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