The Credibility and the Macroeconomic Policy after the abandonment of Convertibility
Keywords:
Macroeconomic Policy, Stabilization Policy, Fiscal and Monetary Policy Analysis, Economic Policy Episodes, Economic HistoryAbstract
This paper describes and analyzes the macroeconomic policy, in particular the monetary and exchange policy, adopted since the abandonment of the Convertibility in 2002 by the Government of E. Duhalde from considering the concept of credibility. The analysis concluded that: 1) the announcements and macroeconomic policy measures taken to deal with the crisis were implemented in a context of total loss of credibility of the authorities after the abandonment of the Convertibility, 2) the response of the In the face of such a loss of credibility, the government took fiscal and monetary adjustments to extremes in order to contain the exchange volatility and reverse the expectations of hyperinflation with a huge cost in terms of falling output, increased unemployment and poverty, and 3) the reversion of the expectations of the economic agents, which manifested itself in the containment of the volatility of the exchange rate, shows that the strong fiscal and monetary adjustment had a much greater weight than the reputational factors in the formation of the expectations
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