Abstract

AMICO, Fabián. Argentina: Differences between the Weak Real Exchange Rate Model and the Convertibility Regime. Inv. Econ [online]. 2008, vol.67, n.264, pp.63-93. ISSN 0185-1667.

After the economic recovery following the 2002 crisis in Argentina, orthodox economists exhibited pessimism and forecast its rapid exhaustion. Paradoxically, the bulk of critical and marxist economists had an equally shaded vision of the recovery process. Despite both forecasts, this paper points out that Argentina shows a sustained growth, higher than the maximum investment rate reached in 1998, and that the accumulation process goes through a very different path when compared to the 90's. The above mentioned process, though favored by international conditions, is the result of a different set of policies than the ones applied between 1991 and 2001. The resultant model faces up with an underlying dilemma in the inverse relationship between exchange rate and wages, demanding major increases in productivity. The strength of the current (and novel) cycle of Argentine growth obeys to the cushioning of the traditional distribution conflict. In the resolution of this problem lay the factors of its current economic recovery.

Keywords : exchange rate policy; distribution; employment.