The shock imposed on Argentina by Mexico's financial crisis had four distinct phases (Banco Central, Republic of Argentina, 1995). The first phase lasted from 20 December 1994 through February 1995. External drains form the currency board-like system occurred, with the central bank's liquid...

To put an end to monetary mischief and rein in hyperinflation, Argentina established an unorthodox currency board system on April 1, 1991. Argentines called the system "convertibility," an uncommon term for an unusual system. Like all currency board arrangements, convertibility maintained a...