What can we learn from the current crisis in Argentina?
By: Timothy J. Kehoe.
Series: Federal Reserve Bank of Minneapolis, Research Department staff report ;; 318; Staff report (Federal Reserve Bank of Minneapolis. Research Dept. : Online) ;; 318.
Publisher: Federal Reserve Bank of Minneapolis
Published: 2003
Place of publication: [Minneapolis, Minn.]
Language: eng
Format: Electronic resource
Subjects: Industrial productivity -- Argentina.; Argentina -- Economic conditions -- 1983-
Description: "Currently, Argentina is experiencing what the government describes as a "great depression." Using the "Great Depressions" methodology developed by Cole and Ohanian (1999) and Kehoe and Prescott (2002), we find that the primary determinants of both the boom in Argentina in the 1990s and the subsequent depression were changes in productivity, rather than changes in factor inputs.  The timing of events links the boom to the currency-board-like Convertibility Plan and the crisis to its collapse.  To gain credibility, the Argentine government took measures to make abandoning the plan more costly.  Because the government was unable to enforce fiscal discipline, however, these increased costs failed to make the plan more credible and instead made the crisis far worse when it failed"--Federal Reserve Bank of Minneapolis web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 11/17/2004.
Also available in print.
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Mode of access: World Wide Web.