Publication:
Living and Dying with Hard Pegs : The Rise and Fall of Argentina's Currency Board

dc.contributor.authorDe la Torre, Augusto
dc.contributor.authorSchmukler, Sergio L.
dc.date.accessioned2014-07-29T14:52:57Z
dc.date.available2014-07-29T14:52:57Z
dc.date.issued2003-03
dc.description.abstractThe rise and fall of Argentina's currency board shows the extent to which the advantages of hard pegs have been overstated. The currency board did provide nominal stability and boosted financial intermediation, at the cost of endogenous financial dollarization, but did not foster monetary or fiscal discipline. The failure to adequately address the currency-growth-debt trap into which Argentina fell at the end of the 1990s precipitated a run on the currency and the banks, followed by the abandonment of the currency board and a sovereign debt default. The crisis can be best interpreted as a bad outcome of a high-stakes strategy to overcome a weak currency problem. To increase the credibility of the hard peg, the government raised its exit costs, which deepened the crisis once exit could no longer be avoided. But some alternative exit strategies would have been less destructive than the one adopted.en
dc.identifierhttp://documents.worldbank.org/curated/en/2003/03/2166846/living-dying-hard-pegs-rise-fall-argentinas-currency-board
dc.identifier.urihttps://hdl.handle.net/10986/19040
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2980
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAFFILIATES
dc.subjectAGGREGATE DEMAND
dc.subjectARGENTINE PESO
dc.subjectASSET SUBSTITUTION
dc.subjectBAD LOANS
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEETS
dc.subjectBANK ACCOUNTS
dc.subjectBANK ASSETS
dc.subjectBANK DEPOSITS
dc.subjectBANK FAILURES
dc.subjectBANK REGULATION
dc.subjectBANK RISK
dc.subjectBANK RUN
dc.subjectBANKING CRISIS
dc.subjectBANKING SECTOR
dc.subjectBANKING SYSTEM
dc.subjectBANKRUPTCY
dc.subjectBANKS
dc.subjectBENCHMARK
dc.subjectBRAZILIAN REAL
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCENTRAL BANK
dc.subjectCENTRAL BANK AS LENDER
dc.subjectCLOSED ECONOMY
dc.subjectCONSOLIDATION
dc.subjectCONTAGION
dc.subjectCONVERTIBILITY
dc.subjectCOST OF CAPITAL
dc.subjectCOUNTRY RISK
dc.subjectCREDIT RISK
dc.subjectCREDITOR
dc.subjectCREDITOR RIGHTS
dc.subjectCURRENCY
dc.subjectCURRENCY BOARD
dc.subjectCURRENCY BOARDS
dc.subjectCURRENCY CRISIS
dc.subjectCURRENCY MISMATCH
dc.subjectCURRENCY OF DENOMINATION
dc.subjectCURRENCY RISK
dc.subjectCURRENCY SUBSTITUTION
dc.subjectCURRENT ACCOUNT
dc.subjectDEBT
dc.subjectDEBT SERVICE
dc.subjectDEFAULT RISK
dc.subjectDEMAND DEPOSITS
dc.subjectDEREGULATION
dc.subjectDEVALUATION
dc.subjectDOLLAR DEPOSITS
dc.subjectDOMESTIC CURRENCY
dc.subjectDOMESTIC MARKETS
dc.subjectEMERGING ECONOMIES
dc.subjectEURO
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATE ADJUSTMENTS
dc.subjectEXCHANGE RATE FLEXIBILITY
dc.subjectEXCHANGE RATE REGIME
dc.subjectEXCHANGE RATE REGIMES
dc.subjectEXCHANGE RATE RISK
dc.subjectEXPORTS
dc.subjectEXTERNAL DEBT
dc.subjectEXTERNAL SHOCKS
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL CONTRACTS
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DEEPENING
dc.subjectFINANCIAL INSTABILITY
dc.subjectFINANCIAL INTERMEDIATION
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCIAL TRANSACTIONS
dc.subjectFISCAL SPENDING
dc.subjectFISCAL SURPLUS
dc.subjectFISCAL SUSTAINABILITY
dc.subjectFLOATING MONEY
dc.subjectFOREIGN BANKS
dc.subjectFOREIGN CURRENCY
dc.subjectFOREIGN EXCHANGE
dc.subjectFOREIGN EXCHANGE RISK
dc.subjectGDP
dc.subjectGOVERNMENT BONDS
dc.subjectGOVERNMENT DEBT
dc.subjectINCOME
dc.subjectINDIVIDUAL BANK
dc.subjectINFLATION
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERMEDIATION
dc.subjectINTERNATIONAL CURRENCY
dc.subjectINTERNATIONAL RESERVES
dc.subjectLABOR MARKETS
dc.subjectLENDER OF LAST RESORT
dc.subjectLIQUIDITY
dc.subjectLOAN CLASSIFICATION
dc.subjectLOAN PORTFOLIO
dc.subjectMACROECONOMICS
dc.subjectMARGINAL COST
dc.subjectMATURITIES
dc.subjectMORTGAGE LOANS
dc.subjectMULTIPLE EQUILIBRIA
dc.subjectNOMINAL DEVALUATION
dc.subjectNOMINAL EXCHANGE RATE
dc.subjectNOMINAL FLEXIBILITY
dc.subjectOPEN ECONOMIES
dc.subjectOVERVALUATION
dc.subjectPEGS
dc.subjectPESOS
dc.subjectPRIVATE BANKS
dc.subjectPROPERTY RIGHTS
dc.subjectPUBLIC DEBT
dc.subjectRATING AGENCIES
dc.subjectREAL EXCHANGE RATE
dc.subjectREGULATORY FRAMEWORK
dc.subjectRESERVE REQUIREMENTS
dc.subjectREVALUATION
dc.subjectSAVINGS
dc.subjectSAVINGS DEPOSITS
dc.subjectSOLVENCY
dc.subjectSTORE OF VALUE
dc.subjectTAX REFORM
dc.subjectTIME DEPOSITS
dc.subjectTRANSPARENCY
dc.subjectTREASURY
dc.subjectTREASURY BONDS
dc.subjectUNEMPLOYMENT
dc.subjectWAGES CURRENCY BOARDS
dc.subjectMONETARY LAW
dc.subjectMONETARY POLICY POLITICAL ASPECTS
dc.subjectCURRENCY DEVALUATION
dc.subjectCURRENCY FLUCTUATION
dc.subjectCURRENCY ISSUANCE
dc.subjectCURRENCY REPEGS
dc.subjectEXCHANGE RATE INSTABILITY
dc.subjectEXCHANGE RATE ADJUSTMENTS
dc.subjectDOLLAR STANDARD
dc.subjectFLOATING EXCHANGE RATES
dc.subjectCURRENCY MARKETS
dc.subjectCONVERTIBILITY
dc.subjectDEPOSIT-REFUND SYSTEM
dc.subjectINTEREST RATES
dc.subjectPESO ARGENTINO
dc.subjectDEMAND DEPOSITS
dc.subjectSAVINGS
dc.subjectBANKING REFORM
dc.subjectWAGES
dc.titleLiving and Dying with Hard Pegs : The Rise and Fall of Argentina's Currency Boarden
dspace.entity.typePublication
okr.date.disclosure2003-03-31
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2003/03/2166846/living-dying-hard-pegs-rise-fall-argentinas-currency-board
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.identifier.doi10.1596/1813-9450-2980
okr.identifier.externaldocumentum000094946_03031804031840
okr.identifier.internaldocumentum2166846
okr.identifier.reportWPS2980
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2003/03/29/000094946_03031804031840/Rendered/PDF/multi0page.pdfen
okr.region.administrativeLatin America & Caribbean
okr.sectorFinance
okr.sectorFinance :: Banking
okr.topicEconomic Theory and Research
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicBanks and Banking Reform
okr.topicMacroeconomics and Economic Growth::Financial Economics
okr.topicPayment Systems and Infrastructure
okr.topicFiscal and Monetary Policy
okr.unitOff of Sr VP Dev Econ/Chief Econ (DECVP)
relation.isAuthorOfPublication35317b87-0569-5cde-bb5e-db1a425e6889
relation.isAuthorOfPublicationad1ad457-a974-53de-815c-c7010e0fdd74
relation.isAuthorOfPublication.latestForDiscovery35317b87-0569-5cde-bb5e-db1a425e6889
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Loading...
Thumbnail Image
Name:
multi0page.pdf
Size:
3.17 MB
Format:
Adobe Portable Document Format
No Thumbnail Available
Name:
multi0page.txt
Size:
147.63 KB
Format:
Plain Text
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description: