Currency substitution in Argentina, 2003-2019: An evaluation of alternative explanations

Autores
Graña Colella, Santiago; Vernengo, Matías
Año de publicación
2024
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
Currency substitution defined as the use of foreign currency in the domestic economy is a relatively common phenomenon in developing countries. While mainstream economics has analyzed it in some detail, the same is not the case in heterodox economics. This paper proposes an analytical approach to evaluate the effects of currency substitution and its relationship with exchange rate dynamics; it provides an empirical investigation of orthodox and alternative views for the case of Argentina. The orthodox view emphasizes the role of fiscal deficits financed by monetary emissions, while alternative views emphasize the importance of external vulnerabilities, both associated with current and financial account deficits as the source of currency substitution. We find some support in favor of the alternative or heterodox perspective on currency substitution or dollarization.
Fil: Graña Colella, Santiago. Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Sociales; Argentina.
Fil: Vernengo, Matías. Bucknell University; Estados Unidos.
Fuente
PSL Quarterly Review, 77(310), 313-327. ISSN 2037-3643. 10.13133/2037-3643/18652
Materia
Cambio de Monedas
Desarrollo Económico
Economía Heterodoxa
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by-nc-nd/4.0/deed.es
Repositorio
Nülan (UNMDP-FCEyS)
Institución
Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Sociales
OAI Identificador
oai:nulan.mdp.edu.ar:4309
Acceder
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oai_identifier_str oai:nulan.mdp.edu.ar:4309
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repository_id_str 1845
network_name_str Nülan (UNMDP-FCEyS)
spelling Currency substitution in Argentina, 2003-2019: An evaluation of alternative explanationsGraña Colella, SantiagoVernengo, MatíasCambio de MonedasDesarrollo EconómicoEconomía HeterodoxaCurrency substitution defined as the use of foreign currency in the domestic economy is a relatively common phenomenon in developing countries. While mainstream economics has analyzed it in some detail, the same is not the case in heterodox economics. This paper proposes an analytical approach to evaluate the effects of currency substitution and its relationship with exchange rate dynamics; it provides an empirical investigation of orthodox and alternative views for the case of Argentina. The orthodox view emphasizes the role of fiscal deficits financed by monetary emissions, while alternative views emphasize the importance of external vulnerabilities, both associated with current and financial account deficits as the source of currency substitution. We find some support in favor of the alternative or heterodox perspective on currency substitution or dollarization.Fil: Graña Colella, Santiago. Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Sociales; Argentina.Fil: Vernengo, Matías. Bucknell University; Estados Unidos.Associazione Economia civile2024-09info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfhttps://nulan.mdp.edu.ar/id/eprint/4309/https://nulan.mdp.edu.ar/id/eprint/4309/1/grana-vernengo-2024.pdf PSL Quarterly Review, 77(310), 313-327. ISSN 2037-3643. 10.13133/2037-3643/18652 <https://doi.org/10.13133/2037-3643%2F18652> reponame:Nülan (UNMDP-FCEyS)instname:Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Socialesenginfo:eu-repo/semantics/altIdentifier/doi/10.13133/2037-3643/18652Argentina2003-2019info:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by-nc-nd/4.0/deed.es2025-09-29T13:41:49Zoai:nulan.mdp.edu.ar:4309instacron:UNMDP-FCEySInstitucionalhttp://nulan.mdp.edu.ar/Universidad públicaNo correspondehttp://nulan.mdp.edu.ar/cgi/oai2cendocu@mdp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:18452025-09-29 13:41:49.337Nülan (UNMDP-FCEyS) - Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Socialesfalse
dc.title.none.fl_str_mv Currency substitution in Argentina, 2003-2019: An evaluation of alternative explanations
title Currency substitution in Argentina, 2003-2019: An evaluation of alternative explanations
spellingShingle Currency substitution in Argentina, 2003-2019: An evaluation of alternative explanations
Graña Colella, Santiago
Cambio de Monedas
Desarrollo Económico
Economía Heterodoxa
title_short Currency substitution in Argentina, 2003-2019: An evaluation of alternative explanations
title_full Currency substitution in Argentina, 2003-2019: An evaluation of alternative explanations
title_fullStr Currency substitution in Argentina, 2003-2019: An evaluation of alternative explanations
title_full_unstemmed Currency substitution in Argentina, 2003-2019: An evaluation of alternative explanations
title_sort Currency substitution in Argentina, 2003-2019: An evaluation of alternative explanations
dc.creator.none.fl_str_mv Graña Colella, Santiago
Vernengo, Matías
author Graña Colella, Santiago
author_facet Graña Colella, Santiago
Vernengo, Matías
author_role author
author2 Vernengo, Matías
author2_role author
dc.subject.none.fl_str_mv Cambio de Monedas
Desarrollo Económico
Economía Heterodoxa
topic Cambio de Monedas
Desarrollo Económico
Economía Heterodoxa
dc.description.none.fl_txt_mv Currency substitution defined as the use of foreign currency in the domestic economy is a relatively common phenomenon in developing countries. While mainstream economics has analyzed it in some detail, the same is not the case in heterodox economics. This paper proposes an analytical approach to evaluate the effects of currency substitution and its relationship with exchange rate dynamics; it provides an empirical investigation of orthodox and alternative views for the case of Argentina. The orthodox view emphasizes the role of fiscal deficits financed by monetary emissions, while alternative views emphasize the importance of external vulnerabilities, both associated with current and financial account deficits as the source of currency substitution. We find some support in favor of the alternative or heterodox perspective on currency substitution or dollarization.
Fil: Graña Colella, Santiago. Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Sociales; Argentina.
Fil: Vernengo, Matías. Bucknell University; Estados Unidos.
description Currency substitution defined as the use of foreign currency in the domestic economy is a relatively common phenomenon in developing countries. While mainstream economics has analyzed it in some detail, the same is not the case in heterodox economics. This paper proposes an analytical approach to evaluate the effects of currency substitution and its relationship with exchange rate dynamics; it provides an empirical investigation of orthodox and alternative views for the case of Argentina. The orthodox view emphasizes the role of fiscal deficits financed by monetary emissions, while alternative views emphasize the importance of external vulnerabilities, both associated with current and financial account deficits as the source of currency substitution. We find some support in favor of the alternative or heterodox perspective on currency substitution or dollarization.
publishDate 2024
dc.date.none.fl_str_mv 2024-09
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv https://nulan.mdp.edu.ar/id/eprint/4309/
https://nulan.mdp.edu.ar/id/eprint/4309/1/grana-vernengo-2024.pdf
url https://nulan.mdp.edu.ar/id/eprint/4309/
https://nulan.mdp.edu.ar/id/eprint/4309/1/grana-vernengo-2024.pdf
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/doi/10.13133/2037-3643/18652
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by-nc-nd/4.0/deed.es
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by-nc-nd/4.0/deed.es
dc.format.none.fl_str_mv application/pdf
dc.coverage.none.fl_str_mv Argentina
2003-2019
dc.publisher.none.fl_str_mv Associazione Economia civile
publisher.none.fl_str_mv Associazione Economia civile
dc.source.none.fl_str_mv PSL Quarterly Review, 77(310), 313-327. ISSN 2037-3643. 10.13133/2037-3643/18652 <https://doi.org/10.13133/2037-3643%2F18652>
reponame:Nülan (UNMDP-FCEyS)
instname:Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Sociales
reponame_str Nülan (UNMDP-FCEyS)
collection Nülan (UNMDP-FCEyS)
instname_str Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Sociales
repository.name.fl_str_mv Nülan (UNMDP-FCEyS) - Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Sociales
repository.mail.fl_str_mv cendocu@mdp.edu.ar
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score 13.070432

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