Fix the Financial Road Before the Others Crash

Argentina, now undergoing a huge financial crisis, faces two choices. In the bad scenario, it will default on its debt, suffer a run on its banks and devalue its currency, causing contagion in emerging markets throughout the world. In the good scenario it will avoid default, but only by imposing an austerity plan so harsh that the economy contracts this year and next, imposing tremendous hardship on Argentina’s people.