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NBER Working Papers and Publications
|November 2009||Thirty Years of Currency Crises in Argentina: External Shocks or Domestic Fragility?|
with Graciela Kaminsky, Nada Choueiri: w15478
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 contration 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.
Published: Graciela Kaminsky & Amine Mati & Nada Choueiri, 2009. "Thirty Years of Currency Crises in Argentina: External Shocks or Domestic Fragility?," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION. citation courtesy of