Hard peg and monetary unions.Main lessons from the Argentine experience
AbstractCurrency board (CB) was a corner solution for Argentine hyperinflation, however its balance is controversial. How does a CB work as a long run regime? After evaluating the result of ten years CB regime, we obtain important lessons for a monetary union and for dollarization proposals. We discuss: 1) the capacity of such a regime to deal with real and nominal volatility, 2) fiscal problems and debt dynamics, 3) financial problems under currency substitution, 4) CB regime compared with dollarization and 5) the feasibility of a single–peg CB in a flexible exchange rate world.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 7843.
Date of creation: 2004
Date of revision: 2007
Currency board; Dollarization; Monetary union; Fiscal policy and Monetary policy;
Find related papers by JEL classification:
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-03-25 (All new papers)
- NEP-CBA-2008-03-25 (Central Banking)
- NEP-MON-2008-03-25 (Monetary Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert Mundell, 2000.
"Currency Areas, Exchange Rate Systems and International Monetary Reform,"
CEMA Working Papers: Serie Documentos de Trabajo.
167, Universidad del CEMA.
- Robert Mundell, 2000. "Currency Areas, Exchange Rate Systems and International Monetary Reform," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 217-256, November.
- Eduardo Borensztein & Andrew Berg, 2000.
"The Choice of Exchange Rate Regime and Monetary Target in Highly Dollarized Economies,"
IMF Working Papers
00/29, International Monetary Fund.
- Andrew Berg & Eduardo Borensztein, 2000. "The Choice of Exchange Rate Regime and Monetary Target in Highly Dollarized Economies," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 285-324, November.
- Enrique Alberola & Luis Molina, 2000. "Fiscal Discipline and Exchange Rate Regimes: a Case for Currency Boards?," Banco de Espaï¿½a Working Papers 0006, Banco de Espa�a.
- Jeffrey A. Frankel, 1999. "No Single Currency Regime is Right for All Countries or At All Times," NBER Working Papers 7338, National Bureau of Economic Research, Inc.
- Ricardo J. Caballero, 2000. "Macroeconomic Volatility in Latin America: A Conceptual Framework and Three Case Studies," Journal of LACEA Economia, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
- Jorge Carrera & Guillermo Vuletin, 2003. "The Effects of Exchange Rate Regimes on Real Exchange Rate Volatility. A Dynamic Panel Data Approach," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31th Brazilian Economics Meeting] c67, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Jorge Carrera & Romain Restout, 2008.
"Long Run Determinants of Real Exchange Rates in Latin America,"
0811, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
- Jorge Carrera & Romain Restout, 2008. "Long Run Determinants of Real Exchange Rates in Latin America," Post-Print halshs-00276402, HAL.
- Jorge Carrera & Luis N. Lanteri, 2007.
"Macroeconomic Shocks and Financial Vulnerability,"
BCRA Working Paper Series
200717, Central Bank of Argentina, Economic Research Department.
- Carrera, Jorge Eduardo & Cicowiez, Martín & Lacunza, Hernán & Saavedra, Marcelo, 2005.
"Interdependencia y regímenes cambiarios en Mercosur: un modelo macroeconómico de equilibrio general computado para su medición
[Interdependence under different exchange rate regimes in the Merco," MPRA Paper 7845, University Library of Munich, Germany, revised 2005.
- Sell, Friedrich L., 2004. "Währungspolitik im Dienste von Entwicklung : Immer noch ein Forschungsprogramm!," Working Papers in Economics 2004,2, Universität der Bundeswehr München, Economic Research Group.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.