Argentina's convertibility plan and the IMF
Article Abstract:
Convertibility, also referred to as currency board system, is a monetary policy in Argentina that has the advantage of reducing exchange-rate risk. While maintaining a fixed exchange rate, net domestic assets are not increased to prevent losing reserves, thus avoiding the central bank to finance the treasury or expand credit to commercial banks. Increasing or maintaining money supply at a preannounced rate is another monetary rule that requires a comparative exchange-rate system.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1997
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The double drain with a cross-border twist: more on the relationship between banking and currency crises
Article Abstract:
An analysis of currency crisis transmission mechanisms reveals that the mechanisms responsible for banking crises causing currency crises in a given country may also be able to transmit currency crises between countries. The study also shows that international agencies such as the IMF may be used to prevent and contain such crises but there is no evidence supporting their role as lender of last resort.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1998
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