Goodbye Capital Controls, Hello IMF Loans, Welcome Back Financial Repression. Notes on Argentina’s 2018/2019 Currency Crash

Emilian Libman () and Leonardo Stanley ()

No 20584, Ensayos de Economía from Universidad Nacional de Colombia Sede Medellín

Abstract: Abstract: This article describes the Argentinean experience during the first two decades of the 21st century. After a successful recovery phase from the 2001 debt crisis, during 2011 Argentina adopted incorrect macroeconomic policies to avoid the contractionary and inflationary effects from a large depreciation of the currency, by implementing a strict system of restrictions on foreign exchange purchase and sale. The restrictions were lifted 4 years after their implementation, and during 2016-2017 Argentina drew heavily from international capital markets until the country suffered a sudden stop of capital flows. Resumen: Este artículo describe la experiencia argentina durante las dos primeras décadas del siglo XXI. Luego de una recuperación exitosa de la crisis de 2001, a partir del ano 2011 Argentina adoptó una política macroeconómica incorrecta, implementando un esquema de restricciones a la compra - venta de divisas. Cuatro anos luego de introducidas, las restricciones fueron levantadas, y durante 2016-2017 Argentina retornó a los mercados financieros internacionales, hasta que el país sufrió de un freno a los ingresos de capitales.

Keywords: Capital Controls; Inflation Targeting; Foreign Exchange Restrictions; Currency Crises; IMF programs; capital flow bonanzasontroles de capitales; metas de inflación; restricciones en el mercado de cambios; crisis cambiarias; programas del FMI; auge de flujo de capitales (search for similar items in EconPapers)
JEL-codes: F21 F32 F53 (search for similar items in EconPapers)
Pages: 23
Date: 2022-01-22
New Economics Papers: this item is included in nep-his and nep-mon
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