| By Emilano Pagnotta on Thursday, January 24, 2002 - 06:23 pm: |
Since Argentina currently shows lacks of a monetary policy rule, i would like to discuss the feasibility of adopting an IT regime. In my opinion, Argentina doesn´t meet the basic requirements to float with an IT anchor since it suffers from a weak financial system a strong fiscal indiscipline, a highly indebted government in foreign currency, a vulnerable central bank, low demand for domestic assets, etc. Nonetheless, it seems the authorities are going in that direction.