In addition to the effects of import substitution policies, the post-World War II Argentine economy further struggled because of military rule and internal conflict. From the late 1940s to 1980s bad economic policies and political turmoil resulted in a stagnating economy. The government would run fiscal deficits because of irresponsible spending and low tax revenues from the poor economy, and to fix this problem would print new money, resulting in variable rates of inflation. ... Monetary policy could not be used as a recessionary aid because inflation would overvalue the peso even more, an...

• Word Count: 728
• Approx Pages: 3
• Grade Level: Undergraduate

The paper focuses on dollarization of the monetary sector, and in particular on holdings asset by residents of foreign currency deposits. The paper acknowledges, however, dollarization of monetary assets popularly is part of a big process of financial market integration. ... The downside of dollarization is that the country gives up its right to influence its own monetary policy by adjusting the money supply.... This suggestion is exerted by then-president Carlos Menem of Argentina in 1999, is to rescue difficulties with monetary and exchange rate policy as an efficient solution to its long hi...

• Word Count: 3668
• Approx Pages: 15
• Has Bibliography
• Grade Level: Undergraduate

"We expect the markets to reflect the true value of currency - the way that currencies ought to be valued is based upon economic activity, a fiscal policy, monetary policy of the respective governments, the potential for growth, and the potential for long-term viability of economies that's how our respective currencies ought to be valued- (President Bush) Over the past two years the value of the American dollar relative to other currencies, such as the Japanese Yen and the Euro, has declined dramatically. ... As the above quote from President Bush points out, the current administratio...

• Word Count: 1225
• Approx Pages: 5
• Has Bibliography
• Grade Level: Undergraduate

Exchange Rate Arrangements In 1944, The International Monetary Fund (IMF) was created to encourage exchange stability (Radebaugh, Gray, & Black, 2006, p.351). ... Fixed Exchange Rate Policy According to the United States Agency of International Development (2011), "A fixed exchange rate regime might better be called, the fix the exchange rate (foreign currency price of the national currency) and, if necessary, devalue (lower the foreign currency price of the national currency) when it becomes too difficult to maintain the rate regime". ... The International Monetary Fund can tighten ...

• Word Count: 1468
• Approx Pages: 6
• Has Bibliography
• Grade Level: Undergraduate