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Stabilisation Plans In Argentina: ¿What Have We Learned From Thwarted Experiences?

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  • Rezk Ernesto

Abstract

Argentina is being subject to periods of long lasting high inflation (also known as chronic inflation), in which stabilisation plans, based upon different tools (e.g.use of interest rates or monetary aggregates) fell short of being successful and various explanations were resorted io for explaining failed experiences; in this connection, whereas in some cases the blame was put on fiscal policies favouring high fiscal deficits and excessive money printing, there were also explanations seeking the cause for inflation on supply rigidities as well as on oligopolist behaviours by determined economic agents, let alone some natural causes. In trying to more precisely enquire over this long lasting problem in Argentina, as well as on the reasons for stabilisation plans´ poor performance in Argentina, the paper includes an anylisis of stylized facts during four presidential terms (period 2007-2019) based upon the theoretical content of G. Calvo´s seminal paper "Fighting Chronic Inflation with Interest Rates".

Suggested Citation

  • Rezk Ernesto, 2023. "Stabilisation Plans In Argentina: ¿What Have We Learned From Thwarted Experiences?," Asociación Argentina de Economía Política: Working Papers 4689, Asociación Argentina de Economía Política.
    • Handle: RePEc:aep:anales:4689
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    References listed on IDEAS

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    1. Calvo, Guillermo A. & Vegh, Carlos A., 1999. "Inflation stabilization and bop crises in developing countries," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 24, pages 1531-1614, Elsevier.
    2. Krugman, Paul, 1979. "A Model of Balance-of-Payments Crises," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 11(3), pages 311-325, August.
    3. Calvo, Guillermo A., 1983. "Staggered prices in a utility-maximizing framework," Journal of Monetary Economics, Elsevier, vol. 12(3), pages 383-398, September.
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    More about this item

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

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