US economists to free up Argentine bank system

ARGENTINA - Adam Lerrick and Allan Meltzer, two prominent US economists, have proposed a new scheme to allow Argentines to use the money locked up in the banking system without triggering a collapse of the banks - arguably the single largest problem facing the government.

The previous government of Fernando de la Rua was forced to impose limits on cash withdrawals on 1 December after Argentines rushed to take their savings out of the banks. Subsequent outrage has helped topple two governments