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Finance and Development in an Emerging Market: Argentina and the Interwar Period


  • Gerardo della Paolera
  • Alan M. Taylor


The long-run economic performance of Argentina since World War One has been relatively disappointing until recently. Yet, in the interwar period, signs of future retardation and" recurring crises were not so obvious. It is often claimed that an unmitigated success was the" remarkably rapid growth of domestic financial markets. In conventional models deepening industrializing economy such as" Argentina's. Yet the promise of this trend was unfulfilled: first the outbreak of World War One" and then the Great Depression proved a setback for the fledgling financial system deterioration set in after 1940. In this paper we trace the course of financial development using" historical and international comparisons and we analyze both macro- and microeconomic aspects" of financial intermediation.

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  • Gerardo della Paolera & Alan M. Taylor, 1997. "Finance and Development in an Emerging Market: Argentina and the Interwar Period," NBER Working Papers 6236, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:6236
    Note: IFM

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    1. Carmen M. Reinhart & Graciela L. Kaminsky, 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments Problems," American Economic Review, American Economic Association, vol. 89(3), pages 473-500, June.
    2. Robert G. King & Ross Levine, 1993. "Finance and Growth: Schumpeter Might Be Right," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 717-737.
    3. Maurice Obstfeld & Alan M. Taylor, 1998. "The Great Depression as a Watershed: International Capital Mobility over the Long Run," NBER Chapters,in: The Defining Moment: The Great Depression and the American Economy in the Twentieth Century, pages 353-402 National Bureau of Economic Research, Inc.
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    Cited by:

    1. Bardhan, Pranab & Mookherjee, Dilip, 1999. "Relative Capture of Local and Central Governments: An Essay in the Political Economy of Decentralization," Center for International and Development Economics Research (CIDER) Working Papers 233624, University of California-Berkeley, Department of Economics.
    2. Campos, Nauro F & Karanasos, Menelaos & Tan, Bin, 2008. "Two to Tangle: Financial Development, Political Instability and Economic Growth in Argentina (1896-2000)," CEPR Discussion Papers 7004, C.E.P.R. Discussion Papers.
    3. Barry Eichengreen, 1998. "Exchange Rate Stability and Financial Stability," Open Economies Review, Springer, vol. 9(1), pages 569-608, January.
    4. Paolera, Gerardo Della & Taylor, Alan M., 1999. "Economic Recovery from the Argentine Great Depression: Institutions, Expectations, and the Change of Macroeconomic Regime," The Journal of Economic History, Cambridge University Press, vol. 59(03), pages 567-599, September.
    5. Jorge Niosi, 2014. "The construction of national systems of innovation: a comparative analysis of Argentina and Canada," Chapters,in: National Innovation Systems, Social Inclusion and Development, chapter 12, pages 349-379 Edward Elgar Publishing.
    6. repec:ilo:ilowps:373388 is not listed on IDEAS
    7. Solimano Andrés., 2004. "Globalization, history and international migration : a view from Latin America," ILO Working Papers 993733883402676, International Labour Organization.
    8. Bordo, Michael D. & Vegh, Carlos A., 2002. "What if Alexander Hamilton had been Argentinean? A comparison of the early monetary experiences of Argentina and the United States," Journal of Monetary Economics, Elsevier, vol. 49(3), pages 459-494, April.
    9. Nazmi, Nader, 2005. "Deregulation, financial deepening and economic growth: The case of Latin America," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 447-459, May.
    10. Deidda, Luca G., 2006. "Interaction between economic and financial development," Journal of Monetary Economics, Elsevier, vol. 53(2), pages 233-248, March.
    11. Campos, Nauro F. & Karanasos, Menelaos G. & Tan, Bin, 2009. "From Riches to Rags, and Back? Explaining the Growth Trajectory of Argentina since the 1890s," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 37, Verein für Socialpolitik, Research Committee Development Economics.
    12. Bardhan, Pranab & Mookherjee, Dilip, 1998. "Expenditure Decentralization and the Delivery of Public Services in Developing Countries," Center for International and Development Economics Research (CIDER) Working Papers 233623, University of California-Berkeley, Department of Economics.
    13. Velimir Šonje, 2000. "Exchange Rate and Output in the Aftermath of the Great Depression and During the Transition Period in Central Europe," Working Papers 4, The Croatian National Bank, Croatia.
    14. Alston, Lee J. & Gallo, Andrés A., 2010. "Electoral fraud, the rise of Peron and demise of checks and balances in Argentina," Explorations in Economic History, Elsevier, vol. 47(2), pages 179-197, April.
    15. William Miles, 2002. "The Barings Crisis in Argentina: The role of exogenous European money market factors," Review of Political Economy, Taylor & Francis Journals, vol. 14(1), pages 5-29.
    16. Sanz Villarroya, Isabel, 2007. "Los resultados macroeconómicos y la posición relativa de la economía argentina : 1875-2000," IFCS - Working Papers in Economic History.WH wp07-04, Universidad Carlos III de Madrid. Instituto Figuerola.
    17. Sanz Villarroya, Isabel, 2003. "Derechos de propiedad y crecimiento económico en Argentina : 1875-1990," IFCS - Working Papers in Economic History.WH dh030403, Universidad Carlos III de Madrid. Instituto Figuerola.

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