Structural Volatility in Argentina: A Policy Report

The author identifies sources of volatility in Argentina that include weak international financial links, a recurrent credit crunch and financial underdevelopment problem, a fragile fiscal situation, and a pervasive profit and collateral squeeze mechanism brought about by a rigid labor market and exchange rate system. The paper's policy recommendations include improving external financial links, continuing and accelerating the path of domestic financial deepening, giving very high priority to the reduction of the public debt burden problem, and addressing the fundamental incompatibility between labor market rigidities and a highly inflexible exchange rate system.

Bibliographic Details

Main Author:	Inter-American Development Bank
Other Authors:	Ricardo J. Caballero
Format:	Working Papers biblioteca
Language:	English
Published:	Inter-American Development Bank
Subjects:	Economy, Financial Sector, economic stabilization;structural adjustmen;WP-422;economic policy,
Online Access:	http://dx.doi.org/10.18235/0010781 https://publications.iadb.org/en/structural-volatility-argentina-policy-report
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