Convertibility Plan (Argentina)

E681588

The Convertibility Plan was Argentina’s 1990s currency regime that pegged the peso to the U.S. dollar at a one-to-one rate in an effort to end hyperinflation, ultimately contributing to severe economic imbalances and the later financial crisis.

All labels observed (6)

How this entity was disambiguated

Statements (47)

Predicate Object
instanceOf economic policy ⓘ
exchange rate regime ⓘ
alsoKnownAs Convertibility Regime ⓘ
Ley de Convertibilidad ⓘ
associatedWithPolicy financial deregulation ⓘ
privatization of state-owned enterprises ⓘ
trade liberalization ⓘ
constraint limited lender-of-last-resort function of central bank ⓘ
loss of exchange rate flexibility ⓘ
contributedTo current account deficits ⓘ
economic vulnerability to external shocks ⓘ
real exchange rate appreciation ⓘ
rising external debt ⓘ
country Argentina ⓘ
criticizedFor contributing to high unemployment ⓘ
contributing to severe recession ⓘ
contributing to social unrest ⓘ
rigidity in responding to external shocks ⓘ
domesticCurrency Argentine peso ⓘ
endDate 2002 ⓘ
endEvent abandonment of 1-to-1 peg in January 2002 ⓘ
devaluation of the Argentine peso in 2002 ⓘ
exchangeRatePeg 1 Argentine peso = 1 U.S. dollar ⓘ
historicalSignificance case study in currency board sustainability ⓘ
key example of fixed exchange rate crisis ⓘ
implementedBy Central Bank of Argentina ⓘ
inflationContextBefore hyperinflation in late 1980s ⓘ
influencedBy currency board models in Estonia ⓘ
currency board models in Hong Kong ⓘ
initialEffect macroeconomic stabilization ⓘ
sharp reduction in inflation ⓘ
surge in capital inflows ⓘ
introducedBy Domingo Cavallo ⓘ
introducedUnderGovernmentOf Carlos Menem ⓘ
legalBasis Convertibility Law 23.928 ⓘ
linkedCrisis Argentine economic crisis of 2001–2002 ⓘ
mainGoal end hyperinflation in Argentina ⓘ
restore confidence in the Argentine currency ⓘ
stabilize prices ⓘ
monetaryRule full backing of monetary base with foreign reserves ⓘ
pegCurrency United States dollar ⓘ
linked to: US dollar
policyType hard exchange rate peg ⓘ
region Latin America ⓘ
restrictedPolicy central bank financing of fiscal deficits ⓘ
independent monetary policy ⓘ
startDate 1991 ⓘ
supportedBy International Monetary Fund ⓘ

How these facts were elicited

Referenced by (6)

Full triples — surface form annotated when it differs from this entity's canonical label.

Argentine economic crisis (1998–2002) → precededBy → Convertibility Plan (Argentina) ⓘ
Carlos Menem → signatureEconomicProgram → Convertibility Plan (1 peso = 1 US dollar) ⓘ
linked to: Convertibility Plan (Argentina)
Convertibility Plan (Argentina) → alsoKnownAs → Ley de Convertibilidad ⓘ
linked to: Convertibility Plan (Argentina)
Convertibility Plan (Argentina) → legalBasis → Convertibility Law 23.928 ⓘ
linked to: Convertibility Plan (Argentina)
Domingo Cavallo → notableFor → Convertibility Plan in Argentina ⓘ
linked to: Convertibility Plan (Argentina)
Domingo Cavallo → implementedPolicy → Convertibility Law of 1991 ⓘ
linked to: Convertibility Plan (Argentina)