Thirty Years of Currency Crises in Argentina: External Shocks or Domestic Fragility?

Graciela Laura Kaminsky (), Amine Mati and Nada Choueiri

No 15478, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper examines Argentina’s currency crises from 1970 to 2001, with particular attention to the role of domestic and external factors. Using VAR estimations, we find that deteriorating domestic fundamentals matter. For example, at the core of the late 1980s crises was excessively loose monetary policy while a sharp output contration triggered the collapse of the currency board in January 2002. In contrast, adverse external shocks were at the heart of the 1995 crisis, with spillovers from the Mexican crisis and high world interest rates being key sources of financial distress.

JEL-codes: F3 F30 F32 F34 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-dev and nep-mon
Date: 2009-11
Note: IFM

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