Rego, Juan C., "Fighting Inflation In Argentina: The Crisis of 1982: A SD version of a small monetary, Cagan’s fashion", 1993

Downloadable Content

Download PDF
ua435

ABOUT THIS ITEM

Periodically, at different times of its history, the Argentine economy has been dominated by a vicious circle, well known among developing countries. The Central Bank pays interest on money and such interest is financed through emission of more money thus, causing inflation. In one of these periods: the corresponding to February 1981-July 1982, the accumulated inflation increased to 250 per cent. In 1982, the government decided to reduce the interest rate abruptly, in order to achieve a quick reduction of the inflation rate. However, the year 1982 witnessed the failure of the application of this financial reform. Although the growth rate of liquid assets declined, the inflation rate of July 1982 duplicated the precious month rate. This article reformulates a small economic model, in the Cagan tradition, due to Rodriguez (1986). It was conceived to explain the historic dynamics of the financial indicators, after the reform. Hopefully, the readability of the model should improve, when compared with the original version. And, instead of attributing the dynamics globally to the complex behavior of the system, the paper identifies the cause of this dynamics throughout the causal structure that produced it.

This is the whole item.

Date created
  • 1993
Type
Processing Activity License

ITEM CONTEXT

Part of

f5ad87bb3e8247e3540ac1e44c6717f5

Scope and Contents
Part of

d52b7bb9c69ffcb6558a9eb830eec657

Scope and Contents
Part of

23d738ba88f8333bc39725f9cb5bd0b8

Scope and Contents
Collection
Collecting area

Items