Article
Pesification and Economic Crisis in Argentina: The Moral Hazard Posed by a Politicized Supreme Court
University of Miami Inter-American Law Review
(2003)
Abstract
In March 2003, the Supreme Court of Argentina declared unconstitutional the controversial Presidential "Pesification" Decree, which forcibly converted billions in U.S. dollar-denominated bank deposits into pesos. This issue has subjected an already controversial Court to heightened scrutiny and criticism. The pesification appeal presented a true Morton's Fork (or Catch 22) for the Court. This article offers one view on the causes and consequences of the Court's dilemma. It first will explore the roots of Argentina's latest economic crisis and will review recent news and events. Next, it will provide a brief history of the legal framework in which these events transpired, including a discussion of Argentina's Constitution, its Supreme Court, and the role of constitutional interpretation in a civil law setting. The article finally will consider the Supreme Court's ruling on the pesification decree and possible alternate scenarios available in the Court. Additionally, it will ponder the risks and rewards associated therewith.
Disciplines
Publication Date
2003
Citation Information
Becky Jacobs. "Pesification and Economic Crisis in Argentina: The Moral Hazard Posed by a Politicized Supreme Court" University of Miami Inter-American Law Review Vol. 34 Iss. 3 (2003) p. 391 Available at: http://works.bepress.com/becky-jacobs/3/