This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Living and dying with hard pegs : the rise and fall of Argentina's currency board Author info | Abstract | Publisher info | Download info | Related research | Statistics De la Torre, Augusto
Levy Yeyati, Eduardo
Schmukler, Sergio L.
Additional information is available for the following
registered author(s):
The rise and fall of Argentina's currency board shows the extent to which the advantages of hard pegs have been overstated. The currency board did provide nominal stability and boosted financial intermediation, at the cost of endogenous financial dollarization, but did not foster monetary or fiscal discipline. The failure to adequately address the currency-growth-debt trap into which Argentina fell at the end of the 1990s precipitated a run on the currency and the banks, followed by the abandonment of the currency board and a sovereign debt default. The crisis can be best interpreted as a bad outcome of a high-stakes strategy to overcome a weak currency problem. To increase the credibility of the hard peg, the government raised its exit costs, which deepened the crisis once exit could no longer be avoided. But some alternative exit strategies would have been less destructive than the one adopted.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by The World Bank in its series Policy Research Working Paper Series with number
2980.
Download reference. The following formats are available: HTML ,
plain text ,
BibTeX ,
RIS (EndNote),
ReDIF
Length:
Date of creation: 31 Mar 2003Date of revision:
Handle: RePEc:wbk:wbrwps:2980Contact details of provider: Postal: 1818 H Street, N.W., Washington, DC 20433 Email: Web page: http://www.worldbank.org/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Roula I. Yazigi).
Keywords: Economic Theory&Research Banks&Banking Reform Fiscal&Monetary Policy Payment Systems&Infrastructure Financial Intermediation Banks&Banking Reform Fiscal&Monetary Policy Financial Intermediation Financial Economics Economic Theory&Research Other versions of this item:
This paper has been announced in the following NEP Reports :
References listed on IDEAS 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.: Frankel, Jeffrey A. & Fajnzylber, Eduardo & Schmukler, Sergio L. & Serven, Luis, 2001.
"Verifying exchange rate regimes ,"
Journal of Development Economics ,
Elsevier, vol. 66(2), pages 351-386, December.
[Downloadable!] (restricted)
Other versions: Assaf Razin & Efraim Sadka, 2001.
"Country Risk and Capital Flow Reversals ,"
NBER Working Papers
8171, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Tornell, Aaron & Velasco, Andres, 2000.
"Fixed versus flexible exchange rates: Which provides more fiscal discipline? ,"
Journal of Monetary Economics ,
Elsevier, vol. 45(2), pages 399-436, April.
[Downloadable!] (restricted)
Other versions:
Aaron Tornell & Andres Velasco, 1995.
"Fixed versus Flexible Exchange Rates: Which Provides More Fiscal Discipline? ,"
NBER Working Papers
5108, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Tornell, Aaron & Velasco, Andres, 1995.
"Fixed Versus Flexible Exchange Rates: Which Provides More Fiscal Discipline ,"
Working Papers
95-06, C.V. Starr Center for Applied Economics, New York University.
[Downloadable!] Guillermo A. Calvo & Alejandro Izquierdo & Ernesto Talvi, 2003.
"Sudden Stops, the Real Exchange Rate, and Fiscal Sustainability: Argentina's Lessons ,"
NBER Working Papers
9828, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Roberto Chang & Andres Velasco, 1999.
"Liquidity crises in emerging markets: Theory and policy ,"
Working Paper
99-15, Federal Reserve Bank of Atlanta.
[Downloadable!]
Other versions: Charles Enoch & Tomás J. T. Baliño, 1997.
"Currency Board Arrangements: Issues and Experiences ,"
IMF Occasional Papers
151, International Monetary Fund.
De la Torre, Augusto & Levy Yeyati, Eduardo & Schmukler, Sergio L., 2002.
"Financial globalization : unequal blessings ,"
Policy Research Working Paper Series
2903, The World Bank.
[Downloadable!]
Other versions:
Augusto de la Torre & Eduardo Levy Yeyati & Sergio L. Schmukler, 2002.
"Financial globalization: Unequal blessings ,"
Business School Working Papers
veintinueve, Universidad Torcuato Di Tella.
[Downloadable!] de la Torre, Augusto & Levy Yeyati, Eduardo & Schmukler, Sergio L, 2002.
"Financial Globalization: Unequal Blessings ,"
International Finance ,
Blackwell Publishing, vol. 5(3), pages 335-57, Winter.
[Downloadable!] (restricted) Barry Eichengreen & Ricardo Hausmann, 1999.
"Exchange Rates and Financial Fragility ,"
NBER Working Papers
7418, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Schmukler, Sergio L. & Serven, Luis, 2002.
"Pricing currency risk under currency boards ,"
Journal of Development Economics ,
Elsevier, vol. 69(2), pages 367-391, December.
[Downloadable!] (restricted)
Ize, Alain & Yeyati, Eduardo Levy, 2003.
"Financial dollarization ,"
Journal of International Economics ,
Elsevier, vol. 59(2), pages 323-347, March.
[Downloadable!] (restricted)
Maria Soledad Martinez Peria, 2001.
"Do Depositors Punish Banks for Bad Behavior? Market Discipline, Deposit Insurance, and Banking Crises ,"
Journal of Finance ,
American Finance Association, vol. 56(3), pages 1029-1051, 06.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , 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.)
Eduardo Levy Yeyati & Maria Soledad Martinez Peria & Sergio Schmukler, 2004.
"Market Discipline under Systemic Risk: Evidence from Bank Runs in Emerging Economies ,"
Business School Working Papers
systemicrisk, Universidad Torcuato Di Tella.
[Downloadable!]
Other versions: Panigo, Demian & Torija-Zane, Edgardo, 2004.
"Une approche régulationnniste des crises de l'économie Argentine : 1930-2002 ,"
CEPREMAP Working Papers (Couverture Orange)
0407, CEPREMAP.
[Downloadable!]
Eduardo Levy Yeyati, 2006.
"Liquidity Insurance in a Financially Dollarized Economy ,"
Business School Working Papers
liquid, Universidad Torcuato Di Tella.
[Downloadable!]
Other versions: Tito Cordella & Eduardo Levy Yeyati, 2004.
"Country Insurance ,"
IMF Working Papers
04/148, International Monetary Fund.
[Downloadable!]
Other versions:
Tito Cordella & Eduardo Levy Yeyati, 2004.
"Country Insurance ,"
Business School Working Papers
countryinsurance, Universidad Torcuato Di Tella.
[Downloadable!] Tito Cordella & Eduardo Levy Yeyati, 2004.
"Country Insurance ,"
Econometric Society 2004 North American Summer Meetings
290, Econometric Society.
[Downloadable!] Eduardo Levy Yeyati & Tito Cordella, 2004.
"Country Insurance ,"
Econometric Society 2004 Latin American Meetings
136, Econometric Society.
Tito Cordella & Eduardo Levy Yeyati, 2005.
"Country Insurance ,"
IMF Staff Papers ,
Palgrave Macmillan Journals, vol. 52(si), pages 6.
[Downloadable!] (restricted) Nogues, Julio J. & Baracat, Elias, 2005.
"Political economy of antidumping and safeguards in Argentina ,"
Policy Research Working Paper Series
3587, The World Bank.
[Downloadable!]
Claessens, Stijn & Klingebiel, Daniela & Schmukler, Sergio, 2003.
"Government Bonds in Domestic and Foreign Currency: The Role of Macroeconomic and Institutional Factors ,"
CEPR Discussion Papers
3789, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions: Perry, Guillermo & Serven, Luis, 2003.
"The anatomy of a multiple crisis : why was Argentina special and what can we learn from it? ,"
Policy Research Working Paper Series
3081, The World Bank.
[Downloadable!]
de la Torre, Augusto & Schmukler & Sergio L., 2004.
"Coping with risk through mismatches : domestic and international financial contracts for emerging economies ,"
Policy Research Working Paper Series
3212, The World Bank.
[Downloadable!]
Other versions: David McKenzie & Ernesto Schargrodsky, 2005.
"Buying Less, But Shopping More: Changes In Consumption Patterns During A Crisis ,"
Business School Working Papers
buyinglessshop, Universidad Torcuato Di Tella.
[Downloadable!]
Oliver Grimm, 2007.
"Fiscal Discipline and Stability under Currency Board Systems ,"
Economics working paper series
07/66, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
[Downloadable!]
Eduardo Levy Yeyati, 2006.
"Exchange Rate Regimes in the 2000s: A Latin American Perspective ,"
Business School Working Papers
exchangerate, Universidad Torcuato Di Tella.
[Downloadable!]
Masahiro Kawai & Richard Newfarmer & Sergio L. Schmukler, 2003.
"Financial Crises: Nine Lessons From East Asia ,"
Finance Working Papers
482, East Asian Bureau of Economic Research.
[Downloadable!]
Other versions: Baracat, Elias & nogues, Julio J., 2005.
"WTO safeguards and trade liberalization: lessons from the Argentine footwear case ,"
Policy Research Working Paper Series
3614, The World Bank.
[Downloadable!]
Levy Yeyati, Eduardo & Schmukler, Sergio L. & Van Horen, Neeltje, 2003.
"The price of inconvertible deposits - the stock market boom during the Argentine crisis ,"
Policy Research Working Paper Series
3146, The World Bank.
[Downloadable!]
Other versions:
Eduardo Levy Yeyati & Sergio Schmukler & Neeltje van Horen, 2003.
"The Price of Inconvertible Deposits: The Stock Market Boom during the Argentine crisis" ,"
Business School Working Papers
diez, Universidad Torcuato Di Tella.
[Downloadable!] Yeyati, Eduardo Levy & Schmukler, Sergio L. & Van Horen, Neeltje, 2004.
"The price of inconvertible deposits: the stock market boom during the Argentine crisis ,"
Economics Letters ,
Elsevier, vol. 83(1), pages 7-13, April.
[Downloadable!] (restricted) Marina Halac & Sergio Schmukler, 2003.
"Distributional effects of crises : the role of financial transfers ,"
Policy Research Working Paper Series
3173, The World Bank.
[Downloadable!]
Kathryn M.E. Dominguez & Linda L. Tesar, 2005.
"International Borrowing and Macroeconomic Performance in Argentina ,"
NBER Working Papers
11353, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Eduardo Levy-Yeyati, .
"Financial Dollarization and Debt Deflation Under a Currency Board: The Case of Argentina ,"
DCBSLA Series
3, Inter-American Development Bank, Research Department.
[Downloadable!]
Eduardo Levy Yeyati & Maria Soledad Martinez Peria & Sergio Schmukler, 2004.
"Market Discipline in Emerging Economies: Beyond Bank Fundamentals ,"
Business School Working Papers
marketdiscipline, Universidad Torcuato Di Tella.
[Downloadable!]
Access and
download statistics Did you know? To receive notification of recent additions to the database, subscribe to the free NEP reports .
This page was last updated on 2008-10-3.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .