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The Dollarization Debate$
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Dominick Salvatore, James W. Dean, and Thomas D. Willett

Print publication date: 2003

Print ISBN-13: 9780195155358

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0195155351.001.0001

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Argentina's Currency Board and the Case for Macroeconomic Policy Coordination in Mercosur

Argentina's Currency Board and the Case for Macroeconomic Policy Coordination in Mercosur

Chapter:
(p.401) 23 Argentina's Currency Board and the Case for Macroeconomic Policy Coordination in Mercosur
Source:
The Dollarization Debate
Author(s):

José María Fanelli

Publisher:
Oxford University Press
DOI:10.1093/0195155351.003.0024

This chapter examines the pros and cons of macroeconomic policy coordination in Mercosur. It reviews the macroeconomic functioning of the Argentine economy under convertibility, and the exchange regimes and trade structure of Mercosur countries. It argues that Mercosur countries would greatly benefit from gradually advancing into macro coordination. The first step is to reduce the remaining volatility in the evolution of nominal and relative prices within the bloc.

Keywords:   Argentina, Mercosur, dollarization, currency board, macroeconomic policy coordination, exchange rate

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