Argentina’s Exchange Rate Policy between 2016 and 2019. Context and possible scenarios from a Political Economy Perspective

The rapid succession of nontrivial changes in Argentina’s exchange rate policy poses questions both on the motives which caused those changes and the effectiveness of the current regime to achieve macroeconomic objectives. Regarding this matter, this essay examines the sustainability of the managed flexible exchange rate policy currently in force in the country between December 2015 and the primary elections on August 2019, and the viability of adopting a fixed exchange rate for a certain period. The approach adopted for the analysis is that political economy of exchange rates regimes under external constraints on economic growth. At the ending date of this research, August 2019, it is concluded that a fixed exchange rate policy and a depreciated currency might be an option consistent with reaching the internal and external equilibrium of Argentinian economy until conditions are appropriate for the adoption of a flexible exchange rate regime.

• Main Author: Massot, Juan Miguel
• Format: Online
• Language: spa
• Published: Facultad de Ciencias Económicas. Instituto de Economía y Finanzas 2020
• Subjects: Exchange rate regimes; inflation targeting; macroeconomic policy; Argentina; regímenes cambiarios; metas de inflación; política macroeconómica; Argentina
• Online Access: https://revistas.unc.edu.ar/index.php/acteconomica/article/view/27438