Slow growth is now returning but will likely remain below precrisis levels in the near future. Sticking to the Plan Despite its drawbacks, the Convertibility Plan looks set to remain the bedrock of Argentina's economic policy because of its stunning success in reducing inflation, which fell from nearly 2,300 percent in 1990 to 1.6 percent in 1995.
Investors seem to agree that the Convertibility Plan is the best option.
An additional indication of investor confidence is Argentina's recent tapping of the international capital markets, with Deutschmark, yen, lira and Swiss franc issues. Although international investors and the IMF may approve of President Carlos Menem's economic policies, some in Argentina are having second thoughts. In late July Menem fired Cavallo amidst mass public demonstrations against the fiscal austerity measures, slow growth, and continued high unemployment. Public protest has continued, culminating in a 36-hour general strike by the trade unions in late September. This action followed a similar strike in August that paralyzed much of the country.