Publication:
The Anatomy of a Multiple Crisis : Why Was Argentina Special and What Can We Learn from It?

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dc.contributor.authorPerry, Guillermo
dc.contributor.authorServen, Luis
dc.date.accessioned2014-05-05T20:27:44Z
dc.date.available2014-05-05T20:27:44Z
dc.date.issued2003-06
dc.description.abstractThe Argentine crisis has been variously blamed on fiscal imbalances, real overvaluation, and self-fulfilling investor pessimism triggering a capital flow reversal. The authors provide an encompassing assessment of the role of these and other ingredients in the recent macroeconomic collapse. They show that in the final years of convertibility, Argentina was not hit harder than other emerging markets in Latin America and elsewhere by global terms-of-trade and financial disturbances. So the crisis reflects primarily the high vulnerability to disturbances built into Argentina's policy framework. Three key sources of vulnerability are examined: the hard peg adopted against optimal currency area considerations in a context of wage and price inflexibility; the fragile fiscal position resulting from an expansionary stance in the boom; and the pervasive mismatches in the portfolios of banks' borrowers. While there were important vulnerabilities in each of these areas, neither of them was higher than those affecting other countries in the region, and thus there is not one obvious suspect. But the three reinforced each other in such a perverse way that taken jointly they led to a much larger vulnerability to adverse external shocks than in any other country in the region. Underlying these vulnerabilities was a deep structural problem of the Argentine economy that led to harsh policy dilemmas before and after the crisis erupted. On the one hand, the Argentine trade structure made a peg to the dollar highly inconvenient from the point of view of the real economy. On the other hand, the strong preference of Argentinians for the dollar as a store of value-after the hyperinflation and confiscation experiences of the 1980s-had led to a highly dollarized economy in which a hard peg or even full dollarization seemed reasonable alternatives from a financial point of view.en
dc.identifierhttp://documents.worldbank.org/curated/en/2003/06/2416987/anatomy-multiple-crisis-argentina-special-can-learn
dc.identifier.doi10.1596/1813-9450-3081
dc.identifier.urihttps://hdl.handle.net/10986/18175
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 3081
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGGREGATE DEMAND
dc.subjectASYMMETRIC SHOCKS
dc.subjectBALANCE OF PAYMENTS
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEETS
dc.subjectBANKING SECTOR
dc.subjectBANKING SYSTEM
dc.subjectCAPACITY BUILDING
dc.subjectCAPITAL ACCOUNT
dc.subjectCAPITAL FLOW REVERSALS
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL GAINS
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCD
dc.subjectCLOSED ECONOMY
dc.subjectCONSOLIDATION
dc.subjectCURRENCY AREA
dc.subjectCURRENCY BOARD
dc.subjectCURRENT ACCOUNT
dc.subjectCURRENT ACCOUNT BALANCE
dc.subjectCURRENT ACCOUNT DEFICIT
dc.subjectCURRENT ACCOUNT SURPLUS
dc.subjectDEBT
dc.subjectDEBT RESTRUCTURING
dc.subjectDEFLATION
dc.subjectDEMAND DEPOSITS
dc.subjectDEVALUATION
dc.subjectECONOMETRIC MODELS
dc.subjectECONOMIC CONTRACTION
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC IMPACT
dc.subjectECONOMIC PERFORMANCE
dc.subjectELASTICITY
dc.subjectEMERGING ECONOMIES
dc.subjectEMERGING MARKETS
dc.subjectEQUILIBRIUM
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATE REGIME
dc.subjectEXPORT MARKETS
dc.subjectEXPORT PRICES
dc.subjectEXPORTS
dc.subjectEXTERNAL DEBT
dc.subjectEXTERNAL ENVIRONMENT
dc.subjectEXTERNAL FINANCIAL SHOCKS
dc.subjectEXTERNAL SHOCKS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SYSTEM
dc.subjectFISCAL POLICIES
dc.subjectFISCAL POLICY
dc.subjectFLEXIBLE EXCHANGE RATE
dc.subjectFOREIGN ASSETS
dc.subjectGINI COEFFICIENT
dc.subjectGLOBAL FACTOR
dc.subjectGLOBAL FACTORS
dc.subjectGROWTH RATE
dc.subjectIMPLICIT LIABILITIES
dc.subjectIMPORTS
dc.subjectINCOME DISTRIBUTION
dc.subjectINCOME EFFECT
dc.subjectINCOME ELASTICITY
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectLABOR MARKET
dc.subjectLIQUIDITY
dc.subjectLOCAL CURRENCY
dc.subjectLONG TERM
dc.subjectMACROECONOMIC VOLATILITY
dc.subjectMARKET CONFIDENCE
dc.subjectMONETARY POLICY
dc.subjectNOMINAL STABILITY
dc.subjectOIL
dc.subjectOPENNESS
dc.subjectOVERVALUATION
dc.subjectPOLICY DECISIONS
dc.subjectPOLICY OPTIONS
dc.subjectPOLICY RESEARCH
dc.subjectPOLITICAL ECONOMY
dc.subjectPOVERTY REDUCTION
dc.subjectPRIVATIZATION
dc.subjectPRODUCTIVITY
dc.subjectPRUDENTIAL REGULATIONS
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC DEFICITS
dc.subjectPUBLIC SECTOR
dc.subjectREAL APPRECIATION
dc.subjectREAL EXCHANGE
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL GDP
dc.subjectREAL INCOME
dc.subjectRISK PREMIUM
dc.subjectSOCIAL SECURITY
dc.subjectSTRUCTURAL REFORMS
dc.subjectTERMS OF TRADE
dc.subjectTERMS OF TRADE SHOCKS
dc.subjectTRADE SHOCKS
dc.subjectTRADE STRUCTURE
dc.subjectTRADE VOLUME
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT RATE
dc.subjectWAGES ECONOMIC CRISIS
dc.subjectBANKING SYSTEMS
dc.subjectDEFLATION
dc.subjectCAPITAL FLOWS
dc.subjectEXTERNAL SHOCKS
dc.subjectTRADE STRUCTURE
dc.subjectECONOMIC CRISIS
dc.subjectWAGES
dc.titleThe Anatomy of a Multiple Crisis : Why Was Argentina Special and What Can We Learn from It?en
dspace.entity.typePublication
okr.crossref.titleThe Anatomy of a Multiple Crisis: Why was Argentina Special and What Can We Learn from It?
okr.date.doiregistration2025-04-10T09:53:17.836871Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2003/06/2416987/anatomy-multiple-crisis-argentina-special-can-learn
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid825301468768605450
okr.identifier.doi10.1596/1813-9450-3081
okr.identifier.externaldocumentum000094946_03070904012091
okr.identifier.internaldocumentum2416987
okr.identifier.reportWPS3081
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2003/07/22/000094946_03070904012091/Rendered/PDF/multi0page.pdfen
okr.region.administrativeLatin America and Caribbean
okr.region.countryArgentina
okr.sectorFinance :: General finance sector
okr.topicFiscal and Monetary Policy
okr.topicInternational Economics and Trade::Free Trade
okr.topicBanks and Banking Reform
okr.topicPayment Systems and Infrastructure
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Macroeconomic Management
okr.topicEnvironmental Economics and Policies
okr.topicFinance and Financial Sector Development
okr.unitOffice of the Chief Economist, Latin America and the Cariblbean Region
okr.volume1
relation.isAuthorOfPublication2c4139d2-7458-5296-9aea-6d3db3e1ae1e
relation.isAuthorOfPublication.latestForDiscovery2c4139d2-7458-5296-9aea-6d3db3e1ae1e
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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