The Price of Inconvertible Deposits: The Stock Market Boom during the Argentine crisis"

Eduardo Levy Yeyati, Sergio Schmukler and Neeltje Van Horen ()

Business School Working Papers from Universidad Torcuato Di Tella

Abstract: The Argentine crisis witnessed, among other things, a deposit run, the suspension of deposit convertibility, and a “boom” in the stock market. We argue that this boom reflects the cost that depositors were willing to incur to get their money out of the banking system, in light of the impending risks. This boom was generalized to all stocks and more pronounced in liquid stocks. Furthermore, the boom was a symptom that deposits were effectively restricted and that investors were not able to circumvent capital controls.

Pages: 14 pages
Date: 2003-04-01
New Economics Papers: this item is included in nep-fin and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: The price of inconvertible deposits: the stock market boom during the Argentine crisis (2004)
Working Paper: The price of inconvertible deposits - the stock market boom during the Argentine crisis (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:udt:wpbsdt:diez

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