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A Tale of Two Monetary Reforms: Argentinean Convertibility in Historical Perspective

Author

Listed:
  • Esteban Pérez-Caldentey
  • Matías Vernengo
Abstract
Argentina adopted currency type board arrangements to put an end to monetary instability in the nineteenth and the twentieth centuries under very different historical circumstances and contexts with very different results. The first currency board functioned within an international system that functioned in manner similar to a closed economy. The second currency board experiment the historical conditions. The poor export performance, and the unsustainable trade and current account deficits, resulting from the process of external liberalization, and the process of international financial liberalization eventually led to the collapse of the Convertibility experiment. The role of economic ideas in particular, the incorrect lessons taken from the first globalization period in furthering the economic imbalances were central to the failure of the 1991 Convertibility experiment.

Suggested Citation

  • Esteban Pérez-Caldentey & Matías Vernengo, 2007. "A Tale of Two Monetary Reforms: Argentinean Convertibility in Historical Perspective," Working Paper Series, Department of Economics, University of Utah 2007_01, University of Utah, Department of Economics.
  • Handle: RePEc:uta:papers:2007_01
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    References listed on IDEAS

    as
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    5. Thomas J. Sargent, 1982. "The Ends of Four Big Inflations," NBER Chapters, in: Inflation: Causes and Effects, pages 41-98, National Bureau of Economic Research, Inc.
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    7. Werner Baer & Pedro Elosegui & Andres Gallo, 2002. "The Achievements and Failures of Argentina's Neo-liberal Economic Policies," Oxford Development Studies, Taylor & Francis Journals, vol. 30(1), pages 63-85.
    8. John H. Coatsworth & Jeffrey G. Williamson, 2002. "The Roots of Latin American Protectionism: Looking Before the Great Depression," NBER Working Papers 8999, National Bureau of Economic Research, Inc.
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    15. Mathías Vernengo, 2007. "Money and Inflation," Chapters, in: Philip Arestis & Malcolm Sawyer (ed.), A Handbook of Alternative Monetary Economics, chapter 28, Edward Elgar Publishing.
    16. Fanelli, José María, 2002. "Crecimiento, inestabilidad y crisis de la convertibilidad en Argentina," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    17. Reinhart, Carmen, 2004. "Straining at the Anchor: The Argentine Currency Board and the Search for Macroeconomic Stability, 1880-1935: A Review," MPRA Paper 13201, University Library of Munich, Germany.
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Vernengo, Matías & Pérez Caldentey, Esteban, 2012. "Portrait of the economist as a young man: Raúl Prebisch's evolving views on the business cycle and money, 1919-1949," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    2. Leonidas Zelmanovitz & Carlos Newland & Juan Carlos Rosiello, 2022. "The great depression as a global currency crisis: An Argentine perspective," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 35(1), pages 99-114, March.

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    More about this item

    Keywords

    Globalization; Monetary Reform; Argentina;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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