Case about inflation- Dining and Dollars in Buenos Aires

Back in 2014, the Adentro Dinner Club was among the best-reviewed restaurants in Buenos Aires, Argentina. In fact, it was fully booked well in advancebut not too far in advance. Why? Because Kelly Brenner and Gabriel Aguallo, the owners of the restaurant, didn't dare accept reservations, say, for two months ahead, because at the time of booking they couldn't know how much they would have to charge for a meal. In fact, that year many Argentinian restaurants had given up printing menus with prices, resorting to using chalkboards so that prices could be easily erased and revised.

In 2014, Argentina was in severe economic distress. Unable to either raise taxes or cut spending, its government ran intractable budget deficits but was unable to borrow on world markets. In addition, the country was suffering from a bout of high inflation, a problem that has occurred frequently in its history. Officially, the inflation rate was 24% that year, but independent analysts put the number closer to 40%.

Luckily for Brenner and Aguallo, most of their customers were American tourists, so they were able to charge in U.S. dollars. The purchasing power of dollars was much more predictable than that of Argentine pesos. This solution wasn't available to less prestigious businesses, however. The Argentine government imposed restrictions that made it difficult to convert pesos into foreign currencyeven patrolling the border with currency-sniffing dogs. Only a small elite had access to dollars on a regular basis.

As of early 2017, the year-old government of Argentina's President, Mauricio Macri, was struggling to bring inflation under control. If you are a tourist in Argentina, don't bother looking for the Adentro Dining Club. It closed in 2015, when its owners decided to move to the United States.

Question:

1. What was the relationship between inflation and the Argentine government's chronic budget deficits?
2. What were the implications of Argentina's inability to get its government deficits under control for Argentine businesses?
3. Why did the Argentine government try to stop Argentinians from converting pesos into foreign currency, such as dollars?