Free Market
Author:
Joseph T. Salerno
Online Publish Date:
The Free Market 20, no. 5 (May 2002) The monetary situation in Argentina is a glaring example of confiscatory deflation. In 1992, after yet another bout of hyperinflation, Argentina pegged its new currency, the peso, to the US dollar at the rate of 1-to-1. In order to maintain this fixed peso/dollar peg, the Argentine central bank pledged to