Next Article in Journal
Adaptive Market Hypothesis: Evidence from the Vietnamese Stock Market
Next Article in Special Issue
A Cointegration of the Exchange Rate and Macroeconomic Fundamentals: The Case of the Indonesian Rupiah vis-á-vis Currencies of Primary Trade Partners
Previous Article in Journal
Do Diamond Stocks Shine Brighter than Diamonds?
Previous Article in Special Issue
Simulation of the Grondona System of Conditional Currency Convertibility Based on Primary Commodities, Considered as a Means to Resist Currency Crises
Article Menu
Issue 2 (June) cover image

Export Article

Open AccessArticle

Money as an Institution: Rule versus Evolved Practice? Analysis of Multiple Currencies in Argentina

International Institute of Social Studies, Erasmus University Rotterdam, Kortenaerkade 12, 2518AX The Hague, The Netherlands
J. Risk Financial Manag. 2019, 12(2), 80; https://doi.org/10.3390/jrfm12020080
Received: 6 March 2019 / Revised: 24 April 2019 / Accepted: 28 April 2019 / Published: 8 May 2019
(This article belongs to the Special Issue Currency Crisis)
  |  
PDF [533 KB, uploaded 12 June 2019]
  |  

Abstract

Monetary policies and adjustments during a financial crisis depend on policy-makers’ conceptions on what money is and how it works. There is sufficient consensus among scholars that money is an institution created within the economic system and is in line with other institutions that regulate economic action. However, there are different understandings of what institutions are and how they operate, and these understandings imply differences in terms of monetary enforcement, resilience, responsiveness and stability. This paper discusses the two main approaches that conceptualise institutions as rules and as practices presenting an empirically informed discussion of money as an institution drawing on these insights. It grounds the analysis on the empirical case of Argentina as a monetary laboratory and the plurality of currencies that circulate in its economy. The study argues that while the official currency of Argentina corresponds to the institutions as rules approach, the adoption of the U.S. dollar into a bimonetary economy evolved as equilibrium. In between, the massive community currency systems that rose and declined during the economic meltdown between 1998 and 2002 were a hybrid institution that combined rules and practice. All three of them show various degrees of resilience and stability. View Full-Text
Keywords: economic institutions; currency; monetary plurality; Argentina economic institutions; currency; monetary plurality; Argentina
Figures

Graphical abstract

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Gómez, G.M. Money as an Institution: Rule versus Evolved Practice? Analysis of Multiple Currencies in Argentina. J. Risk Financial Manag. 2019, 12, 80.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
J. Risk Financial Manag. EISSN 1911-8074 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top