The Purchasing Power Parity Theory Works – Illustrated by the Sad Tale of the Argentine Peso

© 2021, Farok J. Contractor, Distinguished Professor, Management & Global Business, Rutgers Business School On  November 8, 2021, it happened — as predicted by the purchasing power parity (PPP) theory: the Argentine monetary unit crossed the symbolically important threshold of 100 pesos = 1 US dollar (USD). A lurid but sad tale. A century ago, … Continue reading The Purchasing Power Parity Theory Works – Illustrated by the Sad Tale of the Argentine Peso

Argentina Seems Headed for Another Currency Crisis (and Perhaps Default)

© 2020, Farok J. Contractor, Rutgers Business School In many dozens of emerging nations, perhaps as many as sixty of them, the government interferes in the foreign exchange market to prevent, or delay, the devaluation of its currency. Featured Image Credit: ngcoin.com A recent article from the Financial Times (FT)[1] about Argentina’s peso is yet another illustration … Continue reading Argentina Seems Headed for Another Currency Crisis (and Perhaps Default)