Jump to ContentJump to Main Navigation
Capital Controls and Capital Flows in Emerging EconomiesPolicies, Practices, and Consequences$
Users without a subscription are not able to see the full content.

Sebastian Edwards

Print publication date: 2007

Print ISBN-13: 9780226184975

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226184999.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 27 May 2020

International Borrowing and Macroeconomic Performance in Argentina

International Borrowing and Macroeconomic Performance in Argentina

Chapter:
(p.297) 7 International Borrowing and Macroeconomic Performance in Argentina
Source:
Capital Controls and Capital Flows in Emerging Economies
Author(s):

Kathryn M. E. Dominguez

Linda L. Tesar

Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226184999.003.0008

This chapter investigates the evolution of capital flows and macroeconomic performance in Argentina from the adoption of the Convertibility Plan in 1991 until the collapse of the pegged exchange rate regime in early 2002. After exchange and capital controls were imposed in late 2001—through the so-called Corralito—the stock market experienced a 50 percent gain. One potential explanation of the stock market boom in Argentina is that investors viewed the likely devaluation of the peso as beneficial for firms, although in other countries such crises are generally harmful. Under the Corralito, the capital inflows did not occur, and the dollars and/or shares remained outside of Argentina. The Corralito led in a massive redistribution of wealth between depositors, lenders, and financial institutions.

Keywords:   capital flows, macroeconomic performance, Argentina, Convertibility Plan, exchange rate, Corralito, stock market, capital inflows

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.