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The Government's Foreign Debt in the Argentine Crisis

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  • Shigeto Kitano

Abstract

Though the government had adopted a currency board regime since 1991, the Argentine economy suffered a currency crisis in 2002. It is shown that currency crises can arise, even under currency board systems in which the central bank has enough international reserves to respond to arbitrary withdrawals by individuals. The model implies that a government's rapid accumulation of foreign debt should be included as a major predictor of currency crises.

Suggested Citation

  • Shigeto Kitano, 2005. "The Government's Foreign Debt in the Argentine Crisis," Review of Development Economics, Wiley Blackwell, vol. 9(3), pages 368-379, August.
    • Handle: RePEc:bla:rdevec:v:9:y:2005:i:3:p:368-379
    DOI: 10.1111/j.1467-9361.2005.00282.x
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    Cited by:

    1. Stefan Eichler & Dominik Maltritz, 2011. "Stock Market‐Induced Currency Crises—A New Type of Twins," Review of Development Economics, Wiley Blackwell, vol. 15(2), pages 223-236, May.

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