When dollar-denominated credits create peso deposits: notes on the recent Argentinean experience

Ariel Dvoskin & Emiliano Libman

European Journal of Economics and Economic Policies: Intervention2026https://doi.org/10.4337/ejeep.2026.0161article
AJG 1ABDC C
Weight
0.50

What the paper says

This paper explores the mechanisms of endogenous money creation in Argentina, which became more evident due to a ‘natural experiment’ – a fiscal moratorium that triggered a massive inflow of capital during the second half of 2024. This inflow directly contributed to exchange-rate stabilization, an improvement in real wages and economic activity, and, more indirectly, to a positive reassessment of creditworthy demand by the banking system. Both direct – or induced demand – and indirect – or autonomous demand – effects ultimately lead to credit expansion. Furthermore, due to Argentina’s specific regulatory framework, dollar-denominated loans generate deposits in domestic currency while simultaneously increasing the Central Bank’s net international reserves, thus supporting financial stability. We conclude that, while the combination of the moratorium and domestic regulations played a key role in the 2024 stabilization effort, potentially creating conditions for self-sustained stability, the process had only transitory effects and could not be maintained.

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https://doi.org/https://doi.org/10.4337/ejeep.2026.0161

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@article{ariel2026,
  title        = {{When dollar-denominated credits create peso deposits: notes on the recent Argentinean experience}},
  author       = {Ariel Dvoskin & Emiliano Libman},
  journal      = {European Journal of Economics and Economic Policies: Intervention},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.4337/ejeep.2026.0161},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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