Autor: Ertola Navajas Gabriela*, Muñoz Muñoz Alba **, Seoane Hernán D.***
Institución: (*)UdeSA, (**)Universidad Autónoma de Madrid, (***)Universidad Carlos III de Madrid
Año: 2025
JEL: C2, F3
Resumen:
We study the impact of multiple/parallel exchange rate markets. As controls on the exchange rate are often imposed to avoid a currency crisis we study their impact on foreign reserves using Argentina as a natural experiment. We design a Synthetic economy without exchange rate controls and compare it to Argentina. We show evidence that the 2011 controls were largely unexpected. We find that exchange rate controls reduce the accumulation of foreign reserves, contrary to their proclaimed objective. Quantitatively, Argentina’s external reserve in 2014 were 40% smaller than those in the economy without the exchange rate controls.