Argentina's experience with inflation targeting lasted only 26 months. In this paper, we study the reason why this regime failed in Argentina and the economic context of its implementation. We find that the main reason was an internal inconsistency in how inflation targeting was implemented, and...

The paper is aimed at quantifying empirically the monetary transmission mechanism for Argentine, and at analyzing the responses of output, inflation, and money market mutual funds (MMMF) to a positive monetary shock. The idea of incorporating MMMF into the system is to understand how economic...

Purpose This paper analyses the possibility of Latin America's (LA) major economies adopting dollarization, considering that in the last decade macroeconomic instability has once again challenged the ability of certain economies to properly manage their own currency. Design/methodology/approach...

This paper offers an in-depth review of the institutional arrangements underlying existing currency boards (CBAs) in Argentina (until 2001), Eastern Europe, and Asia. An index of precommitment is derived from an analysis of legislative frameworks and monetary policy operations. The index covers...

This paper surveys the institutional and operational features of the six modern currency boards. The survey is developed around three key aspects: organisation, operations and legal foundation. By laying out the facts, this survey seeks to shed light on how and why modern currency boards in...

In 2002, Argentina was hit by a very severe economic crisis. This crisis was a result of the unsustainability of its Currency Board. It has been six years since Bulgaria decided to introduce its Currency Board. Since then, Bulgaria has gone a long way in stabilizing its economy and progressing...

Currently, the need to understand this system, re updates the knowledge problem, by means of a methodology that addresses problems with a historical approach. This essay intends to encourage reflection about capitalism, the financial world and the insertion of the surrounding countries, focusing...

We test the existence and extent of capital flows as an offset to monetary policy in Argentina from 1992-2014. After providing an analysis of Argentina's past and current economic conditions, a theoretical framework of the offset and sterilization mechanisms will be provided. Then, with the use...

The uncertainty around monetary policy decision-making requires central banks to make extensive use of macroeconomic models both to analyze the current economic situation and to forecast the evolution of the main economic variables. The Small Economic Model (SEM) for Argentina describes in a...

In the Argentine hyperinflations of 1989 and 1990, quasi-fiscal deficits were a major part of the problem. The Central Bank´s quasi-fiscal activities are financed directly by money printing but in some cases the monetary authority tries to sterilize the effect on the money supply by issuing...