Working Paper: NBER ID: w9257
Authors: Sebastian Edwards
Abstract: In this paper I discuss in what way, if any, the collapse of Argentina's experience with a currency board has affected the policy debate on the appropriate exchange rate regime in emerging and transition countries. More specifically, I deal with three issues: (1) I discuss some important aspects of the Argentine experience. (2) I provide a comparative evaluation of economic performance under strict dollarization. And (3), I analyze emerging countries' experiences with flexible exchange rates, including the issue of fear of floating.'
Keywords: No keywords provided
JEL Codes: F3; F4
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| collapse of Argentina's currency board (F31) | shift in the policy debate on exchange rate regimes (F33) |
| high degree of dollarization in Argentina (F31) | severity of the economic crisis (G01) |
| collapse of the currency board (F31) | economic turmoil and devaluation (F31) |
| high level of dollarization (F31) | increased debt burdens in dollar terms (F34) |
| devaluation of the peso (F31) | widespread bankruptcies (G33) |
| perception of the peso as equivalent to the dollar (F31) | loss of trust in the currency (E42) |