Argentina pegged its currency in 1991 explain why a peg is, Ask an Expert

Economics

Argentina pegged its currency in 1991. Explain why a peg is useful for reducing inflation. Explain

why the following two things made the peg difficult to maintain a decade later:

(i) Inflation took a few years to converge to US levels after the peg was introduced;

(ii) the banking system began to see a large number of withdrawals starting in the late 1990s.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91867072

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