The Price of Inconvertible Deposits : The Stock Market Boom during the Argentine Crisis
The Argentine crisis witnessed, among other things, a deposit run, the suspension of deposit convertibility, and a "boom" in the stock market. The authors argue that this boom reflects the cost that depositors were willing to incur to get...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/10/2579640/price-inconvertible-deposits-stock-market-boom-during-argentine-crisis http://hdl.handle.net/10986/18037 |
| Summary: | The Argentine crisis witnessed, among
other things, a deposit run, the suspension of deposit
convertibility, and a "boom" in the stock market.
The authors argue that this boom reflects the cost that
depositors were willing to incur to get their money out of
the banking system, in light of the impending risks. This
boom was generalized to all stocks, and more pronounced in
liquid stocks. Furthermore, the boom was a symptom that
deposits were effectively restricted, and that investors
were not able to circumvent capital controls. |
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