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Ignorance and Influence: U.S. Economists on Argentina's Depression of 1998–2002

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  • Kurt Schuler

Abstract

Economists in the United States wrote reams of commentary on Argentina’s recession-turned-depression of 1998–2002. Most ignored basic facts that were readily available. As a result, they committed important errors, including mistaking Argentina’s central banking system for a currency board and claiming that Argentina’s exports were uncompetitive when in fact Argentina’s share of world exports was growing. The faulty analysis of U.S. and other economists provided justifications for decisions by the Argentine government in early 2002 to devalue the Argentine peso and forcibly convert U.S. dollar assets and liabilities into pesos. Argentina’s depression deepened and exports failed to revive quickly.

Suggested Citation

  • Kurt Schuler, 2005. "Ignorance and Influence: U.S. Economists on Argentina's Depression of 1998–2002," Econ Journal Watch, Econ Journal Watch, vol. 2(2), pages 234-278, August.
    • Handle: RePEc:ejw:journl:v:2:y:2005:i:2:p:234-278
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    1. Kurt Schuler, 2006. "Reply to David Altig and Brad Setser," Econ Journal Watch, Econ Journal Watch, vol. 3(1), pages 105-108, January.
    2. Hanke, Steve, 2017. "On Venezuela's Tragic Meltdown," Studies in Applied Economics 78, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.

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    More about this item

    Keywords

    Argentina; convertibility; currency board; economists;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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