IX Experience with Rapid Liberalization
Author:
Mr. Akira Ariyoshi
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Mr. Andrei A Kirilenko
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Ms. Inci Ötker https://isni.org/isni/0000000404811396 International Monetary Fund

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Mr. Bernard J Laurens
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Mr. Jorge I Canales Kriljenko
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Mr. Karl F Habermeier
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Abstract

Following bouts of hyperinflation in the 1970s and 1980s, Argentina experienced an almost complete loss of monetary policy credibility and a collapse in demand for domestic money and banking services. Stability was reestablished in 1991 with the adoption of the Convertibility Plan, which created a currency board; this ruled out monetization of the fiscal deficit and completed the process of eliminating restrictions on international current and capital payments and transfers that began in late 1989. This monetary and exchange rate regime has been in place ever since, with only minor changes. The adoption of the new regime was accompanied by wide-ranging trade liberalization, deregulation, privatization of public enterprises, fiscal consolidation, and a first round of measures to strengthen prudential regulation and supervision of the financial system.

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Country Experiences with Their Use and Liberalization
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