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

Graciela Kaminsky (), Amine Mati () and Nada Choueiri

Economía Journal, 2009, vol. Volume 10 Number 1, issue Fall 2009, 81-123

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 contraction 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.

Keywords: currency crises; financial contagion; capital inflows (search for similar items in EconPapers)
JEL-codes: F30 F32 F33 F34 F36 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (12)

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Working Paper: Thirty Years of Currency Crises in Argentina: External Shocks or Domestic Fragility? (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000425:008584

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