Institutions, credibility and crisis: The inconsistencies of Argentine exchange rate policy (1991-2006)

The purpose of this article is twofold. The first is to explain the time inconsistencies of the convertibility regime that led to the 2001 crisis. The argument suggests that the credibility requirements for convertibility induced a dynamic of legal, fiscal, financial and external commitments that in...

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Detalles Bibliográficos
Autor: Cherny, Nicolas
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2014
País:Argentina
Institución:Consejo Nacional de Investigaciones Científicas y Técnicas
Repositorio:CONICET Digital (CONICET)
Idioma:inglés
OAI Identifier:oai:ri.conicet.gov.ar:11336/37519
Acceso en línea:http://hdl.handle.net/11336/37519
Access Level:acceso abierto
Palabra clave:ARGENTINA
CONVERTIBILITY
ECONOMIC POLICY
EXCHANGE RATE CRISIS
https://purl.org/becyt/ford/5.6
https://purl.org/becyt/ford/5
Descripción
Sumario:The purpose of this article is twofold. The first is to explain the time inconsistencies of the convertibility regime that led to the 2001 crisis. The argument suggests that the credibility requirements for convertibility induced a dynamic of legal, fiscal, financial and external commitments that increased exit costs and time inconsistencies. The second objective is to explain the tensions of the floating regime that replaced convertibility in 2002. We describe the effects of a floating exchange rate on macroeconomic imbalance and the growing tension between competitiveness and inflation.