The nature of Argentina's policy reforms during 1976-1981

Much of the existing literature on Argentina has emphasized the liberal nature of the economic reforms introduced during the 1976-1981 military government. A major purpose of this paper is to present evidence that contradlcts this interpretation. In particular, I emphasize the implementation of pervasive government controls that severely distorted relative prices. Exchange rate and wage distortions increased social tensions, but given the represive nature of the government, social demands were simply ignored. A second conclusion is that the long-rnn economic interests of the militars, were protectionist as the powerful but inneficient military industrial complex required protection and therefore through taylor made quantitative controls, remained sheltered from the trade liberalization program of those days.