Abstract

A conceptual framework to analyze monetary policy might be the relationship
“policy goal-operating target-monetary instrument.” Although the discretion of the monetary
authorities is severely restricted, this analysis is also applicable to Argentina since 1991. Its
monetary regime is governed by the Convertibility Law, which requires the Central Bank to
convert the domestic currency into dollars, and by the Central Bank Charter, which prescribes
that its “fundamental mission [...] is [...] to maintain the value of the currency.” Five
periods were found when the operating targets and monetary instruments were different,
while the policy goal of price stability remained unchanged.

JEL Classification: E52; F31.