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The Political-Economy of Argentina???s Debacle

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  • Marcos A. Buscaglia

Abstract

In this paper I argue that political-economy considerations ???and in particular the identity of the reformers- are central to understanding the Argentine crisis. During the 90??s the main political parties remained attached to populism, and no strong party emerged at the center of the political spectrum. This had two effects in the reform process. First, it severely deteriorated it (efficiency, corruption), reducing the support of the population. Second, when a series of shocks hit the economy the anti-reform camp tried to undo most reforms, and thus convey a message to the population about the ???right??? model of the world.

Suggested Citation

  • Marcos A. Buscaglia, 2003. "The Political-Economy of Argentina???s Debacle," William Davidson Institute Working Papers Series 2003-594, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2003-594
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    References listed on IDEAS

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    More about this item

    Keywords

    Argentina; Currency Crisis; Political Economy of Reform;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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