Economic history of Argentina assumed power, inflation was equivalent to an annual rate of 5000%, and output had declined sharply. In 1976, the era of import substitution was ended, and the government lowered import barriers, liberalized restrictions on foreign borrowing, and supported the peso against foreign currencies. That exposed the fact that domestic firms could not compete with foreign imports because of the overvalued currency and long-term structural problems. A financial reform was implemented that aimed both to liberalize capital markets and to link Argentina more effectively with the world capital market. After the relatively stable years of 1976 to 1978, fiscal deficits started
Currency War of 2009–11 the currency war had ended – governments of emerging economies were increasingly deciding to accept currency appreciation so as to mitigate rising food prices, one of the causes behind civil discontent driving the Arab Spring. In April, the "Financial Times" joined Bloomberg in reporting that the currency war was beginning to fizzle out, again suggesting a key reason was the trend for emerging economies to allow currency appreciation as a means to offset inflation. Although Brazil is one of the emerging countries that has recently abandoned intervening against appreciation, her finance minister Guido Mantega disagreed with suggestions that the 'currency