The Credibility of Economic Policy Making in Argentina, 1989-2015

Abstract

This paper explores the hypothesis that the credibility of economic policy making in Argentina (or lack thereof) has impacted the volatility of economic performance. To establish the link, a historical review of economic policy making and economic outcomes over the quarter century is presented, informed by a survey of the literature on credibility and the political economy of reforms. A more fundamental question is why policy shifts are so frequent, and this necessarily relates to the political institutions underlying policy making. A recent literature on citizen engagement and accountability, combined with international experience, is then used to consider policy options that could help reestablish credibility during the new administration.