Argentina’s Convertibility Plan pegged its peso to the U.S dollar and banned the printing of unbacked currency. By restricting its money supply and curbing government spending, Argentina reduced inflation from 5,000 percent in 1989 to 1 percent by the year 2,000. Through the early and mid-1990s, Argentina experienced an economic boom attributed to its trade liberalization, monetary and foreign exchange stability, and the privatization of previously state- owned companies.