Hyperinflation, Currency Board, and Bust The Case of Argentina H O H E N H E I M E R V O L K S W I R T S C H A F T L I C H E S C H R I F T E N Jutta Maute Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access This book focuses on “Convertibilidad” , the latest Argentine experience of exchange rate based stabilisation, and aims at isolating the main causes for its tragic collapse in 2001–2. The characteristics of Argentina’s high and hyperinflation during the 1980s are analysed, and the theory of currency boards is expounded. The stabilisation tool, an institutionally highly credible currency board arrangement (CBA), though highly effective, could not be an optimal long-term solution, given the country’s structural and trade characteristics. The analysis of the causes of the CBA’s collapse yields a complex picture of interacting factors, among them invaliding ones that had created multiple vulnerabilities over years, and triggering ones that unfolded their worst potential in meeting such vulnerable conditions. After studies in international economics at the University of Hohenheim, Jutta Maute spent several years working with major German banks in the field of international finance. H O H E N H E I M E R V O L K S W I R T S C H A F T L I C H E S C H R I F T E N Jutta Maute Hyperinflation, Currency Board, and Bust Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access Hyperinflation, Currency Board, and Bust The Case of Argentina Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access Hohenheimer Volkswirtschaftliche Schriften Herausgegeben van Prof. Dr. Michael Ahlheim, Prof. Dr. Thomas BeiBinger, Prof. Dr. Ansgar Belke, Prof. Dr. Rolf Caesar, Prof. Dr. Harald Hagemann, Prof. Dr. Klaus Herdzina, Prof. Dr. Walter Piesch, Prof. Dr. Inga Schmidt, Prof. Dr. Ulrich Schwalbe, Prof. Dr. Peter Spahn, Prof. Dr. Jochen Streb, Prof. Dr. Gerhard Wagenhals, Band 56 ~ PETER LANG Frankfurt am Main• Berlin• Bern •Bruxelles• New York• Oxford • Wien Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access Jutta Maute Hyperinflation, currency Board, and Bust TheCaseofArgentlna £ PETER LANG Frankfurt am Main. Berlin . Bern• Bruxelles. New York. Oxford. Wien Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access Open Access: The online version of this publication is published on www.peterlang.com and www.econstor.eu under the interna- tional Creative Commons License CC-BY 4.0. Learn more on how you can use and share this work: http://creativecommons. org/licenses/by/4.0. This book is available Open Access thanks to the kind support of ZBW – Leibniz-Informationszentrum Wirtschaft. ISBN 978-3-631-75447-4 (eBook) Bibliographic Information published by Die Deutsche Blbllothek Die Deutsche Bibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data is available in the internet at <http://dnb.ddb.de>. :p Zugl.: Hohenheim, Univ., Diss., 2006 Gedruckt mit UnterstOtzung der Stiftung Landesbank Baden-Wurttemberg LB::BW D 100 ISSN 0721-3085 ISBN 3-631-55608-X US-ISBN 0-8204-8708-2 © Peter Lang GmbH Europaischer Verlag der Wissenschaften Frankfurt am Main 2006 All rights reserved. All parts of this publication are protected by copyright. Any utilisation outside the strict limits of the copyright law, without the permission of the publisher, is forbidden and liable to prosecution. This applies in particular to reproductions, translations, microfilming, and storage and processing in electronic retrieval systems. Printed in Germany 1 2 3 4 5 7 www.peterlang.de Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access In commemoration of my tate friend Sabine Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access Overview CONTENTS .............................................................................................................. 9 FIGURES ............................................................................................................... 15 ABBREVIATIONS AND ACRONYMS ................................................................... 17 ACKNOWLEDGEMENTS ...................................................................................... 19 1 2 2.1 2.2 2.3 3 3.1 3.2 4 4.1 4.2 5 5.1 5.2 5.3 6 INTRODUCTION ........................................................................................ 21 ARGENTINA'S STABILISATION CHALLENGE ....................................... 25 PRECEDING STABILISATION ATTEMPTS SINCE THE DAYS OF PER6N ..............•........ 25 HIGH AND HYPERINFLATION IN ARGENTINA IN THE 1980s ...................................... 29 OPTIONS FOR STABILISATION IN THE BEGINNING 1990S ................................•....... 75 STABILISATION VIA CURRENCY BOARD .............................................. 83 THE CURRENCY BOARD IDEA ............................................................................. 83 THE SPECIFICS AND FUNCTIONING OF A CURRENCY BOARD ................................ 104 THE ARGENTINE CURRENCY BOARD ARRANGEMENT .................... 145 FEATURES AND IMPLEMENTATION OF THE ARGENTINE CBA .............................•.• 145 THE STABILISATION TRACK DURING THE 1990S ..............................•................... 151 WHAT WENT WRONG? .......................................................................... 199 THE MAIN SUSPECTS ......•............................................................•..•................ 199 TAKING STOCK .............................................................. ................................. 244 MISSED OPPORTUNITIES? ................................................................................ 249 CONCLUSION ......................................................................................... 259 BIBLIOGRAPHY .................................................................................................. 267 STATISTICAL APPENDIX ................................................................................... 279 Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access 9 Contents FIGURES ............................................................................................................... 15 ABBREVIATIONS AND ACRONYMS ................................................................... 17 ACKNOWLEDGEMENTS ...................................................................................... 19 1 INTRODUCTION ........................................................................................ 21 2 ARGENTINA'S STABILISATION CHALLENGE ....................................... 25 2.1 PRECEDING STABILISATION ATTEMPTS SINCE THE DAYS OF PERON ....................... 25 2.2 HIGH AND HYPERINFLATION IN ARGENTINA IN THE 1980S ...................................... 29 2.2.1 2.2.2 2.2.2.1 2.2.2.2 2.2.2.3 2.2.2.4 2.2.2.5 2.2.2.6 2.2.3 2.2.3.1 2.2.3.2 2.2.4 2.2.5 2.2.5.1 2.2.5.2 2.2.5.3 2.2.5.4 2.2.5.5 2.2.5.6 2.2.5.7 2.2.5.8 2.2.5.9 2.2.5.10 2.2.5.11 Rising Money Stock ......................................................................... .. ................... 31 Government Finance ............................................................................................ 33 Inflationary Bias of Governments ...................................................................... 35 Debt Structure .................................................................................................... 37 Are Budget Deficits a Cause or a Consequence of Inflation? ........... .. ............. 39 Erosion of Tax System ............................................................................. .. ....... 40 Lack of Structured Budgeting Process .............................................................. 42 Inflation Tax .......................................................................... .. ........................... 43 Monetary Regime .................................................................................................. 45 Monetary Constitution .............................................. .. ........................................ 45 Monetary Policy ................................................................................................. 47 Inflation Expectations ............................................................................................ 48 Symptoms of High Inflation ................................................................................... 49 Decreasing Demand for Real Money Stock ........................................ .. ............ 49 Currency Substitution ........................................................................................ 50 Undervaluation as a Consequence of Currency Substitution ........................... 52 Acceleration and Variability of Inflation ............................................................. 54 Real Price and Wage Variability ........................................................................ 55 Distortion and Excess Variability of Relative Prices ......................................... 57 Contracting Strategies .......................................................... .. ........................... 60 Disappearance of Markets ................................................................................ 63 Economic Performance ................................................. .. .................................. 65 External Trade ............................................................... .. .................. .. ............ 69 Distributional Effects of High Inflation ............................................................. 71 Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access 10 2.2.6 From High to Hyperinflation .................................................................................. 73 2.3 OPTIONS FOR STABILISATION IN THE BEGINNING 1990s ........................................ 75 2.3.1 2.3.2 2.3.2.1 2.3.2.2 2.3.3 Political Feasibility of Reforms .............................................................................. 75 Shape of Reforms Ending Hyperinflation .......... ................................................... 76 Monetary and Fiscal Reform ................................................................... .. ........ 77 External Anchor: Fixing the Exchange Rate ..................................................... 78 Argentina's Choice ................................................................................................ 80 3 STABILISATION VIA CURRENCY BOARD .............................................. 83 3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 THE CURRENCY BOARD IDEA ............. ..................................... ......................... 83 The Term .............................................................................................................. 83 The Concept. ......................................................................................................... 84 Currency Board vs. Other Fixed Exchange Rate Arrangements ......................... 86 Currency Board vs. Central Bank ......................................................................... 88 Excursus: Doctrinal History and the Currency Board Idea ........... ............... ......... 92 3.1.5.1 Doctrinal Positions: Mercantilist vs. Classical Views .............. .. ........................ 93 3.1.5.2 The Bullionist and Banking-Currency Controversies ........................................ 96 The Early 19 th Century Bullionist Controversy .......................................... .. ........................ 96 The 1840s Banking-Currency Controversy ......................................................................... 97 Findings with Hindsight. ....................................................................................................... 98 3.1.5.3 The Currency Board and Classical Monetary Theory ....................................... 99 3.1.5.4 From Colonial to Present-Day Currency Boards ............................................ 100 Rationale of Colonial Currency Boards ............................................................................. 100 Currency Boards Since 1849 ................................................................... .. ..... .. ...... .......... 102 3.2 THE SPECIFICS AND FUNCTIONING OF A CURRENCY BOARD ................................ 104 3.2.1 Constitutional Elements of a Currency Board ...................... .. .................... ........ 104 3.2.1.1 Anchor Currency ............................................................................................ 104 3.2.1.2 Fixed Exchange Rate ...................................................................................... 106 3.2.1.3 Full Convertibility ....................................... .. .................................................... 108 3.2.1.4 Conduct of Monetary Policy ......... .. ......................................... .. ...................... 109 Control of Private Money Creation .......................................................... ... ....................... 111 Clearing and Day-to-Day Monetary Operations ................................................................ 113 Lender of Last Resort Function ......................................................................................... 113 3.2.1.5 Conduct of Fiscal Policy .................................................................................. 115 3.2.1.6 Institutional Preconditions ........................................ .. ..................... ..... .. ......... 118 3.2.2 Strengths and Weaknesses of a Currency Board .............................................. 120 3.2.2.1 Strengths of a Currency Board ........................................................................ 120 Simplicity and Transparency ............................................................................................ 120 Credibility .......................................................................................................................... 120 Currency Stability ................................................................................... .. ...... .. ................. 121 Interest Rate Convergence ............................................................................................... 121 Financial Intermediation .................................................................................................... 123 Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access 11 3.2.2.2 Weaknesses of a Currency Board ................................................................. 124 Nominal Exchange Rate Rigidity and Exchange Rate Misalignments ......... .. .... .............. 124 Financial Fragility in the Absence of a Lender of Last Resort .......................................... 126 Loss of Other Central Bank Functions .............................................................................. 127 Constraints on Fiscal Policy .............................................................................................. 127 3.2.3 Considerations for Adopting a Currency Board................................ .. ................ 128 3.2.3.1 3.2.3.2 3.2.4 3.2.4.1 3.2.4.2 When is a Currency Board an Appropriate Choice? ....... ................................ 128 Implementation of a Currency Board .............................................................. 131 Duration and Termination of a Currency Board ................................................. 133 Currency Board: Permanent or Transitional Arrangement? ......... .................. 133 Exit Options ..................................................................................................... 135 Built-in Escape Clauses ..................................................................................................... 136 Depreciation ....................................................................................................................... 138 Appreciation ....................................................................................................................... 138 Switch to a Floating Exchange Rate ....... ....... .. .......... .. ..... .. ............. ..................... .. .......... 139 Switch in the Peg ............................................................................................................... 139 3.2.5 Dual Currency Boards: An Extended Proposal for Currency Stability ............... 140 4 THE ARGENTINE CURRENCY BOARD ARRANGEMENT .................... 145 4.1 FEATURES AND IMPLEMENTATION OF THE ARGENTINE CBA ................................ 145 4.1.1 4.1.1.1 4.1.1.2 4.1.2 4.1.2.1 4.1.2.2 The Legal Fixing .................................................................................................. 145 The Convertibility Law ..................................................................................... 145 The New Central Bank Law ............................................................................. 146 Assessment of the Argentine CBA's Configuration .................... ....... ................. 147 Orthodox and Non-Orthodox Elements ........................................................... 147 The Choice of the Anchor and the Rate ............ .. ..... .. ...... ...... ....... .. ...... .......... 148 4.1.2.3 Suboptimal Currency Area .............................................................................. 149 4.2 THE STABILISATION TRACK DURING THE 1990S .................................................. 151 4.2.1 4.2.1.1 4.2.1.2 4.2.1.3 4.2.1.4 4.2.1.5 4.2.1.6 4.2.1.7 4.2.1.8 4.2.1.9 4.2.2 4.2.2.1 4.2.2.2 4.2.2.3 The Early 1990s' Economic Reforms ................................................................. 151 Further Reforms Shaping the Monetary Frame .............................................. 151 Brady Restructuring ......................................................................................... 152 Tax Reforms .................................................................................................... 152 Federal Fiscal Relations ................................... .. ....... ...... ................................ 153 Privatisation and Deregulation ........................................................................ 155 Financial Sector Reform .................................................................................. 158 Social Security Reform .................................................................................... 159 Labour Market Reforms ................................................................................... 161 Trade Liberalisation ......................................................................................... 162 The Early 1990s' Economic Performance: 1991-1994 ...................................... 164 Monetary and Financial Development ........................................... .. ............... 164 Economic Activity ............................................................................................ 166 Fiscal Development ......................................................................................... 167 Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access 12 4.2.2.4 Unemployment and Income Distribution ......................................................... 168 4.2.3 Coping with the Tequila Crisis: 1995 .................................................................. 170 4.2.3.1 The Tequila Effect ........................................................................................... 170 4.2.3.2 Currency and Bank Run .................................................................................. 172 4.2.3.3 Managing the Crisis .............................................................................. .. ......... 172 4.2.3.4 Financial Sector Reforms in the Wake of Tequila ............ .. .... ........ .. ............... 174 4.2.3.5 Fiscal Adjustment Following Tequila ............................................................... 175 4.2.4 The Second Expansionary Phase after Tequila: 1996-1998 ............................. 177 4.2.5 The Late 1990s' Recession: 1999-2001 ............................................................. 179 4.2.5.1 The Asian, Russian, and Brazilian Crises ....................................................... 179 4.2.5.2 More Adverse External Shocks ....................................................................... 180 4.2.5.3 Recession cum Deflation ................................................................................ 181 4.2.5.4 Real Appreciation of the Peso .................. .. ..................................................... 182 4.2.5.5 Fiscal Atrophy ...................................................................... ............................ 183 4.2.5.6 Limited Financial Sector Robustness .............................................................. 185 4.2.5.7 Further Labour Market Reforms ...................................................................... 187 4.2.6 The Run Up to the Collapse: 2001 ................ .. ................................................... 188 4.2.6.1 Meddling with the CBA ................................................................ .. ...... .. .......... 188 4.2.6.2 Emission of Quasi-Monies ............................................................................... 193 4.2.6.3 Social and Political Overflow, and the End of the CBA .................................. 194 4.2.7 A Sketch of the Post-Collapse ........................................................... .. ... .. .......... 195 5 WHAT WENT WRONG? .......................................................................... 199 5.1 THE MAIN SUSPECTS ....................................................................................... 199 5.1.1 5.1.1.1 5.1.1.2 5.1.2 5.1.2.1 5.1.2.2 5.1.3 5.1.3.1 5.1.3.2 5.1.3.3 5.1.4 5.1.4.1 5.1.4.2 5.1.4.3 5.1.5 5.1.5.1 5.1.5.2 5.1.5.3 Fiscal Imbalance .......................... .. ...... ..................... .. ...... ...... .............. .. ............ 199 Persistent Budget Deficits ............................................................................... 200 Total Indebtedness ......................................................................................... 202 Overvalued Exchange Rate ................................................................................ 204 Real Appreciation before 1998 ........................................................................ 204 The Real Exchange Rate after 1998 .................................................. ............. 205 Sudden Stop ....................................................................................................... 207 Leveraged Argentina .................................................... .. ........... .. .................... 208 Debt Sustainability ....................................... .. .................................................. 209 The Sudden Stop in the Region ...................................................................... 210 Shock Exacerbation within MERCOSUR ........................................ .. ................. 213 1994-1998: Fixed Here, Fixed plus Sterilisation There .................................. 214 1999-2001: Fixed Here, Floating plus Sterilisation There ....................... ....... 215 Exposed within MERCOSUR .......................................................................... 216 Institutional Defects ............................................................................................. 217 Insufficient Labour Market Reforms ................................................................ 217 Insufficient Diversification of Production ...................... .. ................................. 219 Banking Sector Reforms Impaired .................................................................. 221 Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access 5.1.5.4 5.1.6 5.1.7 5.1.7.1 5.1.7.2 5.1.7.3 5.1.7.4 5.1.7.5 13 Other Deficient Reforms .................................................................................. 223 Politics ....................................................... ,......................................................... 226 The IMF ............................................................................................................... 228 The IMF and the CBA ...................................................................................... 229 Outline of the IMF's Engagement 1991-2001 ................................................. 230 The Role of the IMF during 1991 to 2000 ....................................................... 232 The Role of the IMF in the Crisis ..................................................................... 234 The Fund's Responsibilities ............................................................................ 237 The Washington Consensus .................. ............................................................. 240 The Cuffency Board Itself................................................................................... 243 5.1.8 5.1.9 5.2 5.2.1 5.2.2 TAKING STOCK ................................................................................................ 244 5.3 5.3.1 5.3.2 5.3.3 5.3.4 5.3.5 Vulnerability ......................................................................................................... 244 Triggers .................................................................................... ........................... 247 MISSED OPPORTUNITIES? ................................................................................ 249 Soft Exit during 1993/1994 ................................................................................. 250 Soft Exit during the Second Expansionary Phase .............................................. 251 Hard Exit after the External Shocks of the Late Nineties ................................... 252 Exit towards Full Dollarisation until 1999............................................................ 254 Dollarisation in the Midst of Crisis ...................................................................... 255 6 CONCLUSION ......................................................................................... 259 Some Lessons ..................................................................................................... .............. 260 Argentina's New Challenge ............. .................................................................................. 264 BIBLIOGRAPHY .................................................................................................. 267 STATISTICAL APPENDIX ................................................................................... 279 Macro Indicators ............................................................................................................... 279 Financial and Banking Indicators ...................................................................................... 281 Fiscal Indicators ................................................................................................................. 284 Distribution and Poverty Indicators ................................................................................... 287 Selected Data .................................................................................................................... 288 Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access 15 Figures FIGURE 1: STABILISATION PROGRAMMES IN ARGENTINA 1959-1990 ......................................... 27 FIGURE 2: INFLATION IN ARGENTINA 1920-1989(1)···································································28 FIGURE 3: ANNUAL INFLATION RATES 1980-1990( 1) .....•.................................••.................•••••.• 29 FIGURE 4: BASE MONEY, MONEY CIRCULATION, AND MONEY AGGREGATES 1984-1990 ............ 32 FIGURE 5: BUDGET DEFICITS 1980-1990 ............................................................................... 35 FIGURE 6: PRESIDENTIAL ELECTIONS AND INFLATION ............................................................... 37 FIGURE 7: GOVERNMENT FINANCING 1980-1990 .................................................................... 39 FIGURE 8: FOREIGN DEBT 1980-1990 .................................... ..... .. ... .. ............. ....... .. .............. 39 FIGURE 9: BUDGET DEFICIT AND INFLATION 1980-1990 ........................................................... 40 FIGURE 10: TAX REVENUE AND TAX STRUCTURE 1980-1990 ................................................... 41 FIGURE 11: FISCAL DEFICITS, SEIGNIORAGE, AND INFLATION .................................................... 45 FIGURE 12: FOREIGN CURRENCY DEPOSITS 1980-1990 .......................................................... 51 FIGURE 13: NOMINAL EXCHANGE RATES 1980-1990 ............................................................... 53 FIGURE 14: REAL EXCHANGE RATES 1980-1990 .................................................................... 54 FIGURE 15: PRICES AND REAL WAGES 1981-1990 ................................................................. 57 FIGURE 16: RELATIVE PRICES 1981-1990 .............................................................................. 60 FIGURE 17: NOMINAL AND REAL INTEREST RATES 1980-1990 ................................................. 64 FIGURE 18: INFLATION AND GDP GROWTH 1980-1990 ........................................................... 68 FIGURE 19: UNEMPLOYMENT IN ARGENTINA 1980-1990 .......................................................... 68 FIGURE 20: OUTPUT GROWTH IN REGIONAL COMPARISON 1980-1990 ..................................... 69 FIGURE 21: FOREIGN TRADE 1980-1990 ................................................................................ 70 FIGURE 22: FOREIGN TRADE PRICES (1986=100) ......................................................... .......... 70 FIGURE 23: REAL INCOMES BY POPULATION GROUPS, 1980=100 ......... ................................... 72 FIGURE 24: BALANCE SHEET OF A CURRENCY BOARD ......................................................•.•.... 89 FIGURE 25: BALANCE SHEET OF A CENTRAL BANK .•................................................................. 90 FIGURE 26: MERCANTILIST VS. CLASSICAL DOCTRINES ............................................................ 95 FIGURE 27: CAPITAL FLOWS TO LATIN AMERICA BETWEEN 1998 AND 2001 (% OF GDP) .......... 210 FIGURE 28: THE SUDDEN STOP IN ARGENTINA, BRAZIL, AND CHILE ......................................... 212 FIGURE 29: IMF FINANCING ARRANGEMENTS WITH ARGENTINA 1991-2001 ............................ 231 FIGURE 30: ARGENTINE REAL GDP GROWTH AND ITS COMPONENTS ..•................................... 279 FIGURE 31: FOREIGN TRADE AND CURRENT ACCOUNT BALANCE ............................................ 279 FIGURE 32: REAL EFFECTIVE EXCHANGE RATE AND INTERNATIONAL RESERVES ...................... 280 FIGURE 33: UNEMPLOYMENT RATE ....................................................................................... 280 FIGURE 34: INFLATION AND MONEY GROWTH ........................................................................ 281 FIGURE 35: DEFLATION ....................................................................................................... 281 FIGURE 36: MONEY MARKET AND LENDING RATES ................................................................ 282 FIGURE 37: INTEREST RATE AND RISK SPREADS ................................................................... 282 Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access 16 FIGURE 38: PESO INTEREST RATES ..... ... ...... ... .... ... .... .... .. .... ............... ...... .. ..... .. .... ... ........... 283 FIGURE 39: BANK LENDING TO PUBLIC AND PRIVATE SECTOR ............ ..... .. ..•...... ... •... ..... .. ... ... 283 FIGURE 40: PESO AND DOLLAR BANK DEPOSITS ........ ................... ....... .•. ............. •. ... .... .. ...... 284 FIGURE 41: PUBLIC AND EXTERNAL DEBT ............................................................•.. .. • ..... ...... 284 FIGURE 42: EXTERNAL DEBT AS A PERCENTAGE OF EXPORTS ... ..... . .......... ... .. .. ... ... .... ..... .... .. 285 FIGURE 43: PRIMARY GOVERNMENT BALANCE .. ..... ... .. ... ... .... .... ... .. ..... .. .. ......... ..... .... ... ... ..... 285 FIGURE 44: OVERALL GOVERNMENT BALANCE . .... ..... ....... ...... ...... ..... .... .... .. .... ... •.. . ...... .... ... 286 FIGURE 45: MAJOR TAXES IN ARGENTINA, AS OF DECEMBER 2001 .. .. ...... .............................. 286 FIGURE 46: GINI COEFFICIENT ............................................................................................. 287 FIGURE 47: PEOPLE LIVING BELOW THE OFFICIAL POVERTY LINE ...... .... .. ... ............................ 287 FIGURE 48: KEY ECONOMIC DATA ............... ... . .... .. . ..... .. . ........... ..... ... ..... .... ......... .... ... ... ..... 288 FIGURE 49: INDICATORS OF ECONOMIC STRUCTURE IN SELECTED EMERGING MARKET ECONOMIES ...... .... ...... ................... .. ... ...... .......... .. .... ... ...... ............................. 289 Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access Abbreviations and Acronyms ALCA BCRA BOCON BONEX CBA CEPAL CFA CPI DATAFIEL EMBI EPH EU FDI FIEL FREPASO FTAA GDP GNP IFS IMF INDEC LIBOR MECON MERCOSUR NPV PJ SBA SOR UCEMA UCR us UTDT VAR VAT WPI XPI Area de Libre Commercio des las Americas Banco Central de la Republica Argentina Banos de Consolidaci6n de Deudas Banos Externos Currency Board Arrangement Comisi6n Econ6mica para America Latina y el Caribe Communaute Financiere d'Afrique Consumer Price Index Statistical Database of FIEL Emerging Markets Bond Index Encuesta Permanente de Hogares European Union Foreign Direct Investment Fundaci6n de lnvestigaciones Econ6micas Latinoamericanas Frente Pais Solidario Free Trade Area of the Americas Gross Domestic Product Gross National Product International Financial Statistics of the IMF International Monetary Fund lnstituto Nacional de Estadistica y Censos London Interbank Offered Rate Ministerio de Economia y Producci6n Mercado Comun del Sur Net Present Value Partido Justicialista Stand-by Arrangement Special Drawing Right Universidad del CEMA Union Civica Radical United States of America Universidad Torcuato di Tella Vector Auto Regression Value Added Tax Wholesale Price Index Export Price Index 17 Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access Jutta Maute - 978-3-631-75447-4 Downloaded from PubFactory at 01/11/2019 04:44:44AM via free access