IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

How to Approach the Next Steps of the Argentine Economy and the Economic Policy?

  • Eduardo L. Curia


    (Centro de Análisis Social y Económico (CASE))

Registered author(s):

    In a context of uncertainty, economic policy-making benefits from the availability of “modeled constructions” contributing to the understanding of the economic phenomenon and the possibility of forecasting, even though by themselves they do not determine the decisions to be made by government authorities. The paper called Un modelo económico pequeño para la Argentina (A small economic model for Argentina) is a contribution in this sense. Naturally, such presentations are tributaries, in a cryptic or underlying way, of a substantial vision related to the articulation of the economy and the strategies involved. In this respect, some considerations are worth mentioning, especially when, as clearly stated by Hernán Lacunza in the editorial note of such work, we face “the reality of a developing country”. In this sense, the abovementioned paper, that invokes a basic model and an extended model where more attention is paid to policy alternatives, uses as reference in the first case the “standard” or canonical inflation targeting model that can hardly be the most appropriate for the “reality of a developing country”. On the contrary, the extended model gives an important step forward because it addresses the policy option selected by the BCRA in the last years, which has consisted in the simultaneous intervention in the money and the foreign exchange markets. This approach differs from the standard view and is prone to a pro-development vision. Therefore, there is discrepancy between the basic model and the extended model; the latter appears as «extrinsic» to the former, the one that refers precisely to the basic configuration of the Argentine economy and the highly idiosyncratic policy rules. This will not be harmless at the time of “measuring” the effects of the operation of both models ("more persistency" in the extended model). Alternatively, this note includes, as a sort of heuristic resource, a presentation referred to two models: a basic model and a model more related to policies, characterized by a higher consistency among them and a better affinity with pro-development considerations. And, regarding the operational effects, it allows to compare the persistence phenomena with the hysteresis phenomena, and the guidelines provided by each for economic policy-making differ among themselves. Finally, and to enrich the contribution made by the abovementioned paper (A small economic model for Argentina) with reference to a more pro-development policy, it would be advisable: a) to include the policy option selected by the BCRA in recent years directly in the basic model; and b) to consider the income policy, which is clearly absent in the abovementioned paper.

    If 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.

    File URL:
    Download Restriction: no

    Article provided by Central Bank of Argentina, Economic Research Department in its journal Ensayos Económicos.

    Volume (Year): 1 (2007)
    Issue (Month): 47 (April - June)
    Pages: 127-143

    in new window

    Handle: RePEc:bcr:ensayo:v:1:y:2007:i:47:p:127-143
    Contact details of provider: Postal: Reconquista 266 - C1003ABF - Buenos Aires
    Phone: (54-11) 4348-3582
    Fax: (54-11) 4348-3794
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bcr:ensayo:v:1:y:2007:i:47:p:127-143. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Federico Grillo)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.