A note on the experience of Inflation Goals in Argentina

Abstract

In 2016, Argentina formally adopted an Inflation Goals (MI) regime. This decision occurred simultaneously with a process of opening the capital account of the balance of payments and the beginning of a new cycle of public indebtedness, especially of an external nature. Two years later, the country went through the most important exchange crisis since the exit of convertibility, and formally abandoned the MI, which represented a milestone in the history of this monetary and exchange arrangement. In this note, the causes that led the authorities to make the decision to abandon the MI are discussed in a preliminary way, addressing both the strategies used in their instrumentation and the circumstances in which this monetary policy regime was implemented. Classification JEL: E31, E52, E62, F31