Argentina became highly "dollarized" during its hyperinflations of 1989 and early 1990. Although inflation has returned to very low rates, a high degree of dollarization has persisted during the early 1990s, counter to what the currency substitution hypothesis predicts. This paper provides new...

This paper surveys the development and operation of the parallel exchange market in Argentina during the 1980s, and evaluates its impact upon macroeconomic performance and policy. The historical evolution of Argentina's exchange market policies is reviewed in order to understand the government's...

This paper addresses a phenomenon often noted in association with programs aimed at stabilizing high rates of inflation: a rise in the ex post real interest rate following implementation of the disinflation strategy. Such increases have been observed in connection with the stopping of European...