The case demonstrates the pressure put by the populist and the efforts by Argentina to maintain a stable and strong monetary system. It also describes the recurrent use of exchange rate stabilization plans.
The case has a twofold focus when the economy had “too little money”: in the 1980’s when there was a rapid increase in the money supply that caused the hyperinflation, while the demand of the money declined significantly and in early 2000’s when the country encountered the decline in the supply of money in the presence of pegged exchange rate.