9 8 5 , ▁the ▁Argent ine ▁austral ▁replaced ▁the ▁dis cred ited ▁pes o . ▁In ▁ 1 9 8 6 , ▁Argentina ▁failed ▁to ▁pay ▁the ▁deb t ▁for ▁several ▁months , ▁and ▁the ▁deb t ▁was ▁ren eg oti ated ▁with ▁the ▁cred itor ▁banks . ▁In ▁ 1 9 8 6 ▁and ▁ 1 9 8 7 , ▁the ▁Austral ▁Plan ▁f aded ▁away , ▁as ▁fis cal ▁policy ▁was ▁und erm ined ▁by ▁large ▁off - bud get ▁sp ending ▁and ▁a ▁loose ▁mon et ary ▁policy , ▁again ▁falling ▁out ▁of ▁comp liance ▁with ▁an ▁IM F ▁programme . ▁A ▁new ▁IM F ▁arrangement ▁was ▁reached ▁in ▁July ▁ 1 9 8 7 , ▁only ▁to ▁collapse ▁in ▁March ▁ 1 9 8 8 . ▁ ▁The ▁next ▁move ▁by ▁the ▁authorities ▁was ▁to ▁launch ▁the ▁Prima vera ▁Plan ▁in ▁August ▁ 1 9 8 8 , ▁a ▁package ▁of ▁econom ically ▁heter odox ▁measures ▁that ▁for es aw ▁little ▁fis cal ▁adjust ment . ▁The ▁IM F ▁refused ▁to ▁res ume ▁l ending ▁to ▁Argentina . ▁Six ▁months ▁after ▁its ▁introduction , ▁the ▁plan ▁col lapsed , ▁leading ▁to ▁hyper infl ation ▁and ▁ri ots . ▁ ▁Free - market ▁re forms ▁( 1 9 9 0 ▁- ▁ 1 9 9 5 ) ▁ ▁The ▁Per on ist ▁Carlos ▁Men em ▁was ▁elected ▁president ▁in ▁May ▁ 1 9 8 9 . ▁He ▁immediately ▁announced ▁a ▁new ▁shock ▁programme , ▁this ▁time ▁with ▁more ▁fis