 Parallel Markets and the Effectiveness of Exchange Controls in Argentina: 1981–9Steven B. Kamin Chapter 2 in Parallel Exchange Rates in Developing Countries, 1997, pp 77-109 from Palgrave Macmillan Abstract: Abstract Argentina’s history of exchange controls and parallel exchange markets dates from the beginning of the 1930s and has persisted, with occasional episodes of liberalization, nearly to the present. The most recent unbroken period of exchange controls in Argentina lasted from early 1982 to the end of 1989 and coincided with one of the most turbulent periods of macroeconomic crisis in Argentina’s history. Faced with balance of payments problems, accelerating inflation, and severe private sector indebtedness, the authorities imposed exchange controls as an alternative to a mix of real devaluation and fiscal adjustment that would have secured long-term stability, but at the cost of short-term contraction. In the absence of fundamental reforms, the macroeconomic crisis deepened, leading to the hyperinflations of mid-1989 and the first quarter of 1990. This hyperinflation, in turn, generated balance of payments pressures so strong as to force the abandonment of exchange controls and the floating of the currency in December 1989. Keywords: Exchange Rate; Monetary Policy; Foreign Exchange; Exchange Control; Real Exchange Rate (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-25520-7_3 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-25520-7_3 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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