CURRENCY BOARD IN ARGENTINA

Lukas Krupka ()
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Lukas Krupka: Prague University of Economics and Business

Medzinarodne vztahy (Journal of International Relations), 2021, vol. 19, issue 1, 48-62

Abstract: The paper deals with currency board system implementation and inflation development in Argentina in 1990s. Argentina’s development in the 20th century resulted in hyperinflation in 1980s and not-growing GDP. Argentina was, hence, in a state called stagflation. The president Menem implemented currency board system (fixed exchange rate system) to fight against hyperinflation there. The GARCH model proved the currency board was successful in decreasing the level of volatility in Argentina. The inflation in absolute numbers decreased too. Argentina, however, implemented so-called currency board-like system that does not follow all needed macroeconomic policy and institutional changes and therefore the model is not fully effective.

Keywords: Argentina; currency board; inflation; stagflation; GARCH model; Menem (search for similar items in EconPapers)
JEL-codes: E42 E58 P16 P24 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:brv:journl:v:19:y:2021:i:1:p:48-62

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