The Convertibility plan was a plan by the Argentine Currency Board that pegged the
Argentine peso
The peso (established as the ''peso convertible'') is the currency of Argentina, identified by the symbol $ preceding the amount in the same way as many countries using peso or dollar currencies. It is subdivided into 100 '' centavos''. Its ISO 4 ...
to the
U.S. dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
between 1991 and 2002 in an attempt to eliminate
hyperinflation
In economics, hyperinflation is a very high and typically accelerating inflation. It quickly erodes the real value of the local currency, as the prices of all goods increase. This causes people to minimize their holdings in that currency as t ...
and stimulate
economic growth
Economic growth can be defined as the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy in a financial year. Statisticians conventionally measure such growth as the percent rate of ...
. While it initially met with considerable success, the board's actions ultimately failed. In contrast to what most people think, this peg actually did not exist, except only in the first years of the plan. From then on, the government never needed to use the
foreign exchange reserves
Foreign exchange reserves (also called forex reserves or FX reserves) are cash and other reserve assets such as gold held by a central bank or other monetary authority that are primarily available to balance payments of the country, influence ...
of the country in the maintenance of the peg, except when the recession and the massive bank withdrawals started in 2000.
Background
For most of the period between 1975 and 1990, Argentina experienced hyperinflation (averaging 325% a year), poor or negative
GDP
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is ofte ...
growth, a severe lack of confidence in the
national government and the
Central Bank
A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union,
and oversees their commercial banking system. In contrast to a commercial bank, a central ba ...
, and low levels of
capital
Capital may refer to:
Common uses
* Capital city, a municipality of primary status
** List of national capital cities
* Capital letter, an upper-case letter Economics and social sciences
* Capital (economics), the durable produced goods used f ...
investment
Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort.
In finance, the purpose of investing i ...
. After eight currency crises since the early 1970s,
inflation
In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reductio ...
peaked in 1989, reaching 5,000% that year. GDP was 10% lower than in 1980 and per capita GDP had fallen by over 20%.
Fixed investment
Fixed investment in economics is the purchasing of newly produced fixed capital. It is measured as a flow variable – that is, as an amount per unit of time.
Thus, fixed investment is the accumulation of physical assets such as machinery, land ...
fell by over half and, by 1989, could not cover yearly
depreciation
In accountancy, depreciation is a term that refers to two aspects of the same concept: first, the actual decrease of fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wear, and second, the a ...
- particularly in the industrial sector. Social indicators deteriorated seriously: real wages collapsed to about half of their 1974 peak and income poverty rates increased from 27% in 1980 to 47% in 1989.
[''Argentina: From Insolvency to Growth.'' The World Bank Press, 1993.]
To a large extent, the main reason behind this long period of hyperinflation was un
sustainable growth
Sustainable development is an organizing principle for meeting human development goals while also sustaining the ability of natural systems to provide the natural resources and ecosystem services on which the economy and society depend. The desir ...
of the
money supply
In macroeconomics, the money supply (or money stock) refers to the total volume of currency held by the public at a particular point in time. There are several ways to define "money", but standard measures usually include Circulation (curren ...
to finance the large fiscal deficits maintained by successive governments. Driven by rising tax evasion and losses among
state enterprises, the total public
fiscal deficit
The government budget balance, also alternatively referred to as general government balance, public budget balance, or public fiscal balance, is the overall difference between government revenues and spending. A positive balance is called a ''g ...
reached 10% of GDP in 1983. Austerity measures pursued by President
Raúl Alfonsín
Raúl Ricardo Alfonsín (12 March 1927 – 31 March 2009) was an Argentine lawyer and statesman who served as President of Argentina from 10 December 1983 to 8 July 1989. He was the first democratically elected president after more than ...
trimmed this 4% in 1985, though the 1989 crisis pushed the shortfall to 7.6% (which could only be financed by suspending debt interest payments).
[ Since Argentina could not participate meaningfully in world capital markets given the great investment risk it posed, the only course available was the financing of these fiscal deficits by monetizing them. This meant that the government levied an ]inflation tax
Seigniorage , also spelled seignorage or seigneurage (from the Old French ''seigneuriage'', "right of the lord (''seigneur'') to mint money"), is the difference between the value of money and the cost to produce and distribute it. The term can be ...
to pay for the fiscal deficits, which in turn contributed to stalling growth.
Another reason for the instability of the Argentine currency was the fragility of domestic financial institutions. The Argentine banking crisis of 1990 underlined this point, as the Central Bank moved to confiscate the deposits of commercial banks with the BONEX plan, to overcome a liquidity
Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include:
* Market liquidity, the ease with which an asset can be sold
* Accounting liquidity, the ability to meet cash obligations when due
* Liqui ...
crunch by exchanging certain types of time deposits for BONEX bonds. Tightening domestic credit became increasingly limited to the public sector: only US$17 billion of loans outstanding (45% of the total) were accounted for by private sector borrowers, and this declined to US$7 billion during the 1989 crisis. Accordingly, the nation's money supply ( M2) fell by nearly identical figures, while affluent Argentine nationals held over US$50 billion overseas.[
There were also external factors that further triggered the ]currency crisis
A currency crisis is a type of financial crisis, and is often associated with a real economic crisis. A currency crisis raises the probability of a banking crisis or a default crisis. During a currency crisis the value of foreign denominated deb ...
, such as interest rate
An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, th ...
fluctuations. In the early 1980s, for example, the United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
imposed tight monetary discipline upon its own institutions, which made it more expensive to borrow money because banks were required to keep higher reserve requirement
Reserve requirements are central bank regulations that set the minimum amount that a commercial bank must hold in liquid assets. This minimum amount, commonly referred to as the commercial bank's reserve, is generally determined by the centra ...
s. Erratic or punitive responses to global financial vagaries by the Central Bank of Argentina itself often left the Argentine economy
The economy of Argentina is the second-largest national economy in South America, behind Brazil. Argentina is a developing country with a highly literate population, an export-oriented agricultural sector, and a diversified industrial base.
...
bearing the brunt. One particularly damaging austerity policy was the Central Bank Circular 1050. Enacted in 1980, it tied monthly installment payments to the value of the U.S dollar in Argentina, which rose over ten-fold between early 1981 and July 1982, when new Central Bank President Domingo Cavallo
Domingo Felipe Cavallo (born July 21, 1946) is an Argentine economist and politician. Between 1991 and 1996 he was Economic Ministry of Argentina during Carlos Menem presidency. He is known for implementing the ''Convertibility plan'', which es ...
rescinded the surcharge (by then, commercial banks had been writing off 5% of their loan portfolio a month). The debacle shattered credit market confidence locally for the rest of the 1980s, directly contributing to the negative economic climate in Argentina during those years.[
]Carlos Menem
Carlos Saúl Menem (2 July 1930 – 14 February 2021) was an Argentine lawyer and politician who served as the President of Argentina from 1989 to 1999. Ideologically, he identified as a Peronist and supported economically liberal policies. H ...
took office six months in advance. His early attempts to stabilize inflation failed, resulting in further depreciation
In accountancy, depreciation is a term that refers to two aspects of the same concept: first, the actual decrease of fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wear, and second, the a ...
of the austral and a serious reduction in the Central Bank's foreign currency reserves
Foreign exchange reserves (also called forex reserves or FX reserves) are cash and other reserve assets such as gold held by a central bank or other monetary authority that are primarily available to balance payments of the country, influence ...
.
In April 1991, Menem reverted the country's policies according to ideas of Washington Consensus
The Washington Consensus is a set of ten economic policy prescriptions considered to constitute the "standard" reform package promoted for crisis-wracked developing countries by Washington, D.C.-based institutions such as the International Monet ...
to what was later to be called economic neoliberalism
Neoliberalism (also neo-liberalism) is a term used to signify the late 20th century political reappearance of 19th-century ideas associated with free-market capitalism after it fell into decline following the Second World War. A prominent fa ...
. This system involved a program of massive privatization
Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
and labor deregulation
Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a ...
laws, which encouraged foreign investment and infused the country with cash to finance its fiscal deficits. However, the linchpin of the new system was the introduction of the Convertibility
Convertibility is the quality that allows money or other financial instruments to be converted into other liquid stores of value. Convertibility is an important factor in international trade, where instruments valued in different currencies mus ...
System.
At the time, there was much debate in Argentina and abroad about how to control inflation and build confidence in local currencies in order to foster investment and growth. There were three options of exchange rate management available to any government: a floating exchange rate
In macroeconomics and economic policy, a floating exchange rate (also known as a fluctuating or flexible exchange rate) is a type of exchange rate regime in which a currency's value is allowed to fluctuate in response to foreign exchange mar ...
, a super-fixed exchange rate
A fixed exchange rate, often called a pegged exchange rate, is a type of exchange rate regime in which a currency's value is fixed or pegged by a monetary authority against the value of another currency, a basket of other currencies, or another m ...
(including the possible use of a currency board
In public finance, a currency board is a monetary authority which is required to maintain a fixed exchange rate with a foreign currency. This policy objective requires the conventional objectives of a central bank to be subordinated to the exchan ...
), or a hybrid system (otherwise known as a soft-peg) such as that which Mexico undertook. The hybrid system consisted of various levels of control over exchange rates, and it was discredited in the early 1990s when empirical evidence from several currency crises showed that, in a world of high capital mobility, a semi-fixed exchange rate was very unstable, because it allowed a country with poor monetary policy to exercise too much discretionary power. The consequence was that a government had to choose between either fixed or fully floating exchange rate systems.
Before the implementation of the currency board there was much debate over which currency or currencies to peg the peso against. In the view of many economists, the peso should have been pegged to a basket of currencies from the countries that were Argentina's major trading partners. Others argued that the peso should be pegged to the U.S. dollar because it would provide simplicity of understanding, the highest degree of safety, greater international credibility, and the promise of increased trade with the United States. The latter argument won the day, with both positive and negative consequences.
Argentina's currency board established a fixed pegging of one-to-one parity between the peso and the U.S. dollar. It also guaranteed full convertibility of pesos into U.S. dollars. The government hoped to establish local and international credibility in the peg and to limit the amount of local control over monetary and fiscal policy. The currency board regime intended to stabilize the peso, encourage both foreign and local investment, and foster sustained economic growth.
Flaws in implementation
The main qualities of an orthodox currency board are:
*A currency board maintains absolute, unlimited convertibility
Convertibility is the quality that allows money or other financial instruments to be converted into other liquid stores of value. Convertibility is an important factor in international trade, where instruments valued in different currencies mus ...
between its notes and coins and the currency against which they are pegged, at a fixed rate of exchange, with no restrictions on current-account or capital-account transactions.
*A currency board's foreign currency reserves must be sufficient to ensure that all holders of its notes and coins can convert them into the reserve currency
A reserve currency (or anchor currency) is a foreign currency that is held in significant quantities by central banks or other monetary authorities as part of their foreign exchange reserves. The reserve currency can be used in international tran ...
(usually 110–115%).
* A currency board only earns profit from interest on reserves (less the expense of note-issuing), and does not engage in forward-exchange transactions.
* A currency board has no discretionary powers to affect monetary policy and does not lend to the government. Governments cannot print money, and can only tax
A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or n ...
or borrow to meet their spending commitments.
*A currency board does not act as a lender of last resort
A lender of last resort (LOLR) is the institution in a financial system that acts as the provider of liquidity to a financial institution which finds itself unable to obtain sufficient liquidity in the interbank lending market when other facil ...
to commercial banks, and does not regulate reserve requirement
Reserve requirements are central bank regulations that set the minimum amount that a commercial bank must hold in liquid assets. This minimum amount, commonly referred to as the commercial bank's reserve, is generally determined by the centra ...
s.
* A currency board does not attempt to manipulate interest rate
An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, th ...
s by establishing a discount rate like a central bank
A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union,
and oversees their commercial banking system. In contrast to a commercial bank, a central ba ...
. The peg with the foreign currency tends to keep interest rates and inflation very closely aligned to those in the country against whose currency the peg is fixed.
The Argentine currency board violated all these rules at one time or another, except that of a fixed exchange rate. Full convertibility with the U.S. dollar became jeopardized upon implementation of exchange rate controls that provided a preferential exchange rate for export
An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is an ...
s. The currency board was allowed to hold up to one-third of its dollar-denominated reserves in the form of bonds issued by the government of Argentina. It acted as lender of last resort and regulated reserve requirements for commercial banks. And it engaged in monetary policy activities. The impact of all this was to reduce the credibility of the Argentine government's intent, and to put speculative pressure on the peso, despite the peg.
Results of the currency board
Argentina implemented its currency board in April 1991. Its main achievement was in controlling inflation, which was brought down from more than 3,000% in 1989 to 3.4% in 1994.
Another major accomplishment of the system was renewed economic growth. Enjoying the high world prices of primary products (Argentina's main exports), GDP grew at an annual rate of 8% between 1991 until the Tequila Effect of 1995. Even after the Mexican crisis, until 1998 the annual growth rate was 6%.
International trade
International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services. (see: World economy)
In most countries, such trade represents a significant ...
also increased dramatically, reflecting the growing degree of openness of the country. Imports increased from US$11.6 billion in 1991 to US$32.3 billion in 2000. Likewise, exports also increased from US$12.1 billion in 1991 to US$30.7 billion in 2000.
Despite these impressive results, there were also negative side effects on social issues, such as increased unemployment
Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is people above a specified age (usually 15) not being in paid employment or self-employment but currently available for Work (human activity), w ...
, unequal income distribution
In economics, income distribution covers how a country's total GDP is distributed amongst its population. Economic theory and economic policy have long seen income and its distribution as a central concern. Unequal distribution of income causes eco ...
and decreased wage
A wage is payment made by an employer to an employee for work done in a specific period of time. Some examples of wage payments include compensatory payments such as ''minimum wage'', ''prevailing wage'', and ''yearly bonuses,'' and remuner ...
rates. Unemployment increased from 6.1% in 1991 to 15% in 2000 as the fixed exchange rate increased foreign price competition and forced local firms to invest in more advanced technologies that required less labor
Labour or labor may refer to:
* Childbirth, the delivery of a baby
* Labour (human activity), or work
** Manual labour, physical work
** Wage labour, a socioeconomic relationship between a worker and an employer
** Organized labour and the la ...
and higher productivity
Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production proces ...
.
Income distribution also showed no improvement — indeed it moved in the wrong direction: the bottom 20% of the population decreased its participation in national income from 4.6% in 1991 to 4.1% in 2000, while the top 20% of the population increased its share of income from 50.4% to 51.4%.
Initially, the poverty rate declined as hyperinflation receded, reaching 17% by 1993 (implying that the inflation tax was primarily absorbed by low-income households), but after the Mexican crisis the trend reversed. Although overall wages increased, they did not benefit all workers equally. Skilled and unskilled workers lost ground compared to managerial and professional income groups.
Government debt increased sharply. Unwilling or unable to raise taxes, and precluded from printing money by the currency board system, the government's only other recourse to finance its budget deficit was to issue debt instruments in the capital markets. Public debt increased sharply from 29.5% of GDP in 1993 to 50.3% in 1999. Moreover, this debt was in foreign currency, since the domestic private savings remained low, and it took place despite large inflows of income from the privatization of formerly state-owned companies. Associated with the increase in public debt was an increase in the debt service ratio In economics and government finance, a country’s debt service ratio is the ratio of its debt service payments (principal + interest) to its export earnings.Glossary of Statistical TermsDebt service ratio OECD, Sep 25, 2001. A country's internation ...
, which increased from 22% of exports in 1993 to 35.2% in 1999, exacerbating an increasing current account deficit
In economics, a country's current account records the value of exports and imports of both goods and services and international transfers of capital. It is one of the two components of its balance of payments, the other being the capital accou ...
.
Part of President Menem's program included large-scale privatization of state-owned companies. Unfortunately, because of the fixed exchange rate, privatization agreements generally linked price increase flexibility to the rate of U.S. inflation, which was often higher than that in Argentina. The relative prices of public utilities thus increased and shifted wealth from the state to the privatized firms — which, without any exchange control restraints, were free to expatriate these windfalls and invest them elsewhere.
External shocks also affected the Argentine currency board. The first was the Mexican crisis of 1994–1995, resulting in a liquidity crunch that drove interest rates sharply higher, stalling growth and spurring unemployment. In quick succession, the ensuing 1997 Asian and 1998 Russian financial crises pounded at the economy by further increasing interest rates as foreign investors became much warier of where they invested their assets, continuing to keep the cost of borrowing high for Argentina. The Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
ian crisis of 1999 probably had the most severe effect, because Brazil is Argentina's largest trading partner, and the crisis was coupled with an appreciating U.S. dollar and a slump in the world prices of primary products. Argentina's competitiveness in world markets was severely hit, given the peso's link to the appreciating U.S. dollar and weakening demand in its northern trading partner. As a result, the economy stalled and subsequently contracted.
These ongoing crises and the strong U.S. dollar in the late 1990s put the spotlight on the decision to peg the peso to the U.S. dollar rather than to a basket of currencies that were better aligned with its trade patterns. While Argentina was mostly trading with countries (Europe
Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...
and Brazil) that did not have the U.S. dollar as their currency, the peso was fluctuating according to the U.S. dollar and not according to Argentina's actual economic position (this is known as the " third currency phenomenon"). Simply put, the dollar peg overvalued the peso in the rest of the world, especially against a weak euro
The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
and the Brazilian real
The Brazilian real (plural, pl. '; currency symbol, sign: R$; ISO 4217, code: BRL) is the official currency of Brazil. It is subdivided into 100 centavos. The Central Bank of Brazil is the central bank and the issuing authority. The real repl ...
, reducing Argentina's competitiveness and compounding the account deficit.
Abandonment of the peg
During the second half of 2001, the pressure mounted on the currency board but there was no clear way out. Since most of country's debt was denominated in U.S. dollars, there would be a huge cost to breaking the peg, not to mention the long-term damage to Argentina's credibility in world capital markets. On the other hand, allowing the market to determine the exchange rate would radically improve competitiveness and eliminate the current account deficit along with the need to borrow money to finance it. Many solutions were considered, including changing the peg to a currency basket of U.S. dollars and euros (which would have entailed an effective and controlled devaluation
In macroeconomics and modern monetary policy, a devaluation is an official lowering of the value of a country's currency within a fixed exchange-rate system, in which a monetary authority formally sets a lower exchange rate of the national curren ...
of the peso), and dollarization (using U.S. dollars as the country's only currency).
On December 3, 2001, the minister Domingo Cavallo
Domingo Felipe Cavallo (born July 21, 1946) is an Argentine economist and politician. Between 1991 and 1996 he was Economic Ministry of Argentina during Carlos Menem presidency. He is known for implementing the ''Convertibility plan'', which es ...
restricted bank deposit withdrawals to a maximum of 1000 pesos/dollars per month until 3 March 2002. This was popularly known as Corralito
Corralito () was the informal name for the economic measures taken in Argentina at the end of 2001 by Minister of Economy Domingo Cavallo in order to stop a bank run which implicated a limit of cash withdrawals of 250 ARS per week (at that t ...
. The effect of the Corralito was so unpopular that the president de la Rúa and Cavallo had to resign. First Ramón Puerta took the presidency and 2 days later Rodríguez Sáa assume. In the week he was in charge, Argentina suspended payments on its external debt. In January 2002, the new president Eduardo Duhalde ordered his finance minister Jorge Remes Lenicov to repeal the Convertibility Law and adopt a new, provisional fixed exchange rate of 1.4 pesos to the dollar (a 29% devaluation) and the conversion of all the bank accounts denominated in dollars into pesos and its transformation in bonds ("Corralon"); soon afterward it completely abandoned its peg and allowed the peso to float freely, resulting in a swift depreciation
In accountancy, depreciation is a term that refers to two aspects of the same concept: first, the actual decrease of fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wear, and second, the a ...
of the peso, which lost 75% of its value with respect to the U.S. dollar in a matter of months, stabilizing at a rate of 2.9 pesos per dollar by 2003.
The reason of this incredible depreciation of the peso was not the economic crisis or the overvaluation, it was the "pesification" of all the accounts. As a consequence of the pesification of every account in Argentina, the 100 billion dollars that were in the banks were changed to 100 billion pesos. This caused an enormous demand for dollars and transformed the normal change of 1.40 pesos per dollar to 4 pesos per dollar in 5 months.
Sources
* Baer, Werner; Elosegui, Pedro & Gallo, Andrés. (2002) The Achievements and Failures of Argentina's Neo-Liberal Economic Policies, Oxford Development Studies, Vol. 30, No. 1, pp. 63–85.
* Bird, Graham. (2002) Argentina's Currency Board: Cry for Argentina - But not for its currency board, New Economy: Surrey Centre for International Economic Studies, pp. 158–165.
* Cavallo, Domingo F. & Cottani, Joaquin A. (1997) Argentina's Convertibility Plan and the IMF, AEA Papers and Proceedings, May, Vol. 87, No. 2, pp. 17–22.
* de la Torre, Augusto; Levy Yeyati, Eduardo & Schmukler, Sergio L. (2003) Living and Dying with Hard Pegs: The Rise and Fall of Argentina's Currency Board, Journal of LACEA Economia, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
* Dornbusch, Rudi. (2001) Exchange Rates and the Choice of Monetary-Policy Regimes: Fewer Monies, Better Monies, AEA Papers and Proceedings, May, Volume 91, No. 2, pp. 238–242.
* Edwards, Sebastian. (2002) The Great Exchange Rate Debate after Argentina, The North American Journal of Economics and Finance, Volume 13, Issue 3, pp. 237–252.
* Gurtner, Francois J. (2003) Currency Boards and Debt Traps: Evidence from Argentina and Relevance for Estonia, (Oxford, Blackwell Publishing Ltd.), pp. 209–228.
* Hanke, Steve H. (2002) On Dollarization and Currency Boards: Error and Deception, Policy Reform, Vol 5 (4), pp. 203–222.
* Hanke, Steve H. (2003) The Argentine Straw Man: A response to Currency Board Critics, Cato Journal, Spring/Summer, Vol. 23, No. 1, p. 47-57.
* Horn, Gustav A., Fritsche, Ulrich. (2002) Argentina in Crisis, DIW Economic Bulletin, Vol. 39, No. 4, pp. 119–126.
* Levy Yeyati, Eduardo (2006) Liquidity Insurance in a Financially Dollarized Economy, NBER Working Papers 12345, National Bureau of Economic Research, Inc.
* Schuler, Kurt. (2002) Fixing Argentina, Policy Analysis, July 16, No. 445.
See also
*Economy of Argentina
The economy of Argentina is the second-largest national economy in South America, behind Brazil. Argentina is a developing country with a highly literate population, an export-oriented agricultural sector, and a diversified industrial base.
A ...
*Argentine economic crisis (1999-2002)
Argentines (mistakenly translated Argentineans in the past; in Spanish (masculine) or (feminine)) are people identified with the country of Argentina. This connection may be residential, legal, historical or cultural. For most Argentines, ...
References
External links
The Crisis that Was Not Prevented: Lessons for Argentina, the IMF, and Globalisation, Jan Joost Teunissen and Age Akkerman (eds.), Fondad, 2003, book, pdf)
*[https://ideas.repec.org/p/wbk/wbrwps/3440.html Levy-Yeyati, Eduardo & Martinez Peria, Maria Soledad & Schmukler, Sergio L., 2004. Market discipline under systemic risk - evidence from bank runs in emerging economies, Policy Research Working Paper Series 3440, The World Bank)]
{{Carlos Menem
Presidency of Carlos Menem
Economic history of Argentina, Currency Board
1991 establishments in Argentina
2002 disestablishments in Argentina