using supply and demand curves, why Argentina had to give up its fixed exchange rate in 2001

Argentine economy in the late 2001 and early 2002 had perhaps the most spectacular
meltdown anywhere in the world since the “great depression of 1929”. The roots of this crash
were the decisions made during past decades by the successive government that steered the
economy in one direction and then another. Argentina had hyperinflation (averaging over 325%
a year), a huge lack of confidence in national government and central bank, low levels of capital
investment and negative or low output growth for most of the periods between 1975 and 1990.
There was as many as eight currency crisis since early 1970s; inflation peaked in 1989, reaching
5000% that year, per capita GDP had fallen by over 20%. Fixed investment fell to such a level
that by 1989, it was not enough to cover the yearly depreciation. There was serious deterioration
in the social indicators such as real wages which fell to about half of their peak in 1974 and there
was increased in income poverty rate from 27% in 1980 to 47% in 1989. The main reasons for
hyperinflation were the followings;
a. Unsustainable growth of money to finance the large government debt which has been
accumulated over the years by successive governments. This along with rising loss in
the state enterprises and tax evasion pushed the fiscal deficit 10% of GDP.
b. The instability arose because of fragility and fumbling of Argentine domestic
financial institutions that...