Case | HBS Case Collection | December 2001 (Revised February 2004)

Argentina's Convertibility Plan

by Rafael M. Di Tella and Ingrid Vogel


Describes the political and economic development in Argentina from 1989 to 1995, with a focus on the role of the currency board. Culminates in Argentine policy makers (Menem in particular) contemplating how to respond to the tequila crisis in the middle of 1995. Focuses on the tradeoff between a fixed exchange rate to maintain price stability and the required high interest rates that impact financial stability. A rewritten version of an earlier case.

Keywords: Currency Exchange Rate; Government and Politics; Interest Rates; Balance and Stability; Developing Countries and Economies; Financial Crisis; Crisis Management; Policy; Currency; Macroeconomics; Argentina;


Di Tella, Rafael M., and Ingrid Vogel. "Argentina's Convertibility Plan." Harvard Business School Case 702-002, December 2001. (Revised February 2004.)