10 Years of a Currency Board: The Argentine Experience

40 Pages Posted: 3 Sep 2008

See all articles by Eduardo Levy Levy-Yeyati

Eduardo Levy Levy-Yeyati

Universidad Torcuato Di Tella - School of Business

Date Written: December 3, 2001

Abstract

The paper revisits the economic implications of currency boards discussed in the literature in light of the recent Argentinean experience with the Convertibility Plan. It finds that, while the plan was successful in bringing down inflation, it has done so at the expense of greater output volatility. Moreover, it finds that the disciplining effect on fiscal expenditures expected from the elimination of the inflation tax did not materialize, contributing to the vulnerability of the country to negative external shocks. The main alternatives to the convertibility regime, namely a floating regime and full dollarization, are explored.

Note: Downloadable document is in Spanish.

Suggested Citation

Levy-Yeyati, Eduardo Levy, 10 Years of a Currency Board: The Argentine Experience (December 3, 2001). Revista de Analisis Economico, Vol. 16, No. 2, 2001. Available at SSRN: https://ssrn.com/abstract=1262465

Eduardo Levy Levy-Yeyati (Contact Author)

Universidad Torcuato Di Tella - School of Business ( email )

Saenz Valiente 1010
C1428BIJ Buenos Aires
Argentina

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