A Dollarization/Free Banking Blueprint for Argentina
The Dollarization Debate. Dominick Salvatore, James W. Dean and Thomas D. Willett, eds., Oxford University Press, 2003
15 Pages Posted: 22 Jan 2013
Date Written: 2003
To put an end to monetary mischief and rein in hyperinflation, Argentina established an unorthodox currency board system on April 1, 1991. Argentines called the system "convertibility," an uncommon term for an unusual system. Like all currency board arrangements, convertibility maintained a fixed exchange rate on the spot market between the peso and its anchor currency, the U.S. dollar. That nominal anchor checked inflation: the consumer price index at the end of 2001 was about where it was in 1994.
Keywords: Steve Hanke, Dollarization, Salvatore Dean Willett, Oxford, Argentina, Currency Board
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