ABSTRACT
When Argentina was part of the Viceroyalty of Perú, trade restrictions imposed by the Spanish mercantile monopoly severely limited human development in regions that were distant from the mines of Alto Peru. After ridding itself of the Spanish mercantile monopoly, Buenos Aires' self-imposed restrictions caused tensions. Beyond trade relations, foreign relations were, in many aspects, limited. For example, Argentina remained financially isolated for a long period after defaulting on its first foreign loan. In the years between the Great Depression and the beginning of the Second World War, external events led to a series of restrictions on trade and on capital flows. The reform of the 1990s, in addition to purging the economy of inflation, reversed the isolationist policies of the previous 45 years. The economic history of Argentina reinforces the importance of removing obstacles to external trade and capital movements in order to resume and sustain rapid growth.
