Domingo Cavallo (right)

Domingo Felipe "Mingo" Cavallo (born July 21, 1946) is an Argentine economist and politician. He has a long history of public service and is known for implementing the Convertibilidad plan, which fixed the dollar-peso exchange rate at 1:1 between 1991 and 2002, and the corralito, which restrained savers from withdrawing their own money from bank accounts and was followed by the December 2001 riots and the fall of President De la Rúa. Image File history File links Download high resolution version (2048x1360, 327 KB) Summary Domingo Cavallo (right) next to ex-Argentine Foreign Minister Adalberto Rodriguez Giavarini. ... Image File history File links Download high resolution version (2048x1360, 327 KB) Summary Domingo Cavallo (right) next to ex-Argentine Foreign Minister Adalberto Rodriguez Giavarini. ... July 21 is the 202nd day (203rd in leap years) of the year in the Gregorian calendar, with 163 days remaining. ... 1946 (MCMXLVI) was a common year starting on Tuesday. ... The Argentine Currency Board pegged the Argentine peso to the U.S. dollar between 1991 and 2002 in an attempt to eliminate hyperinflation and stimulate economic growth. ... A fixed exchange rate, sometimes (less commonly) called a pegged exchange rate, is a type of exchange rate regime wherein a currencys value is matched to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold. ... ISO 4217 Code USD User(s) the United States, the British Indian Ocean Territory,[1] the British Virgin Islands, Cambodia, East Timor, Ecuador, El Salvador, the Marshall Islands, Micronesia, Palau, Panama, Turks and Caicos Islands, and the insular areas of the United States Inflation 2. ... The Argentine peso (originally established as the nuevo peso argentino or peso convertible) is the currency of Argentina. ... Corralito was the informal name for the economic measures taken in Argentina during 2001 by economy minister Domingo Cavallo in order to stop the draining of bank accounts. ... The December 2001 riots were a period of civil unrest and rioting in Argentina that took place during December of 2001, with the worst incidents taking place on December 20 and December 21, 2001, in Argentinas capital Buenos Aires. ... Fernando de la Rúa Bruno (born September 15, 1937) is an Argentine politician. ...

Early years

Cavallo was born in San Francisco, Córdoba Province. He graduated with honors in Accounting (1967) and Economy (1968) at the National University of Córdoba and earned his PhD in Economics (1970). Several years later he got a second doctorate in Economics at Harvard University (1977). San Francisco is a city in the east of the province of Córdoba, Argentina, near the border with the province of Santa Fe, on the intersection of National Routes 19 and 158. ... Córdoba is a province of Argentina, located in the centre of the country. ... The Universidad Nacional de Córdoba is the second oldest university in South America, being founded in 1610( Collegium Maximum) before Universitas Cortuba Tucumanæ1613. ... Harvard University (incorporated as The President and Fellows of Harvard College) is a private university in Cambridge, Massachusetts, USA. Founded in 1636,[2] Harvard is the oldest institution of higher learning still operating in the United States. ...

Beginnings in politics

His involvement in politics began when he was chosen by his peer students to represent them at the highest government body of the Economics School (1965–1966). However, he was then coopted by military regimes, acting as Undersecretary of Development of the provincial government (1969–1970), Director (1971–1972) and Vicepresident of the Board (1972–1973) of the provincial Bank and Undersecretary of Interior of the national government.

In 1982, during the military dictatorship, Domingo Cavallo was appointed to the presidency of the Central Bank. 1982 (MCMLXXXII) was a common year starting on Friday of the Gregorian calendar. ... It has been suggested that this article or section be merged with Dirty War. ...

The 1980s

Notwithstanding this collaboration, when democracy returned in 1983 he became a close economic advisor to Peronist politician José Manuel de la Sota and was elected as a Peronist deputy for Córdoba Province in the 1987 national polls. Based on the Fundación Mediterránea think-tank, he prepared an academic team for taking over the management of the economy, and to that end he participated actively in Carlos Menem's bid to the presidency (1989). President Alfonsín's efforts to control hyperinflation (which reached 200% in July 1989) failed, and led to food riots and Alfonsín's resignation. This article or section does not adequately cite its references or sources. ... José Manuel de la Sota (November 28, 1949 in Córdoba) is an Argentine Justicialist Party politician. ... The Chamber of Deputies is the lower house of the National Congress, Argentinas parliament. ... This article or section does not adequately cite its references or sources. ... Certain figures in this article use scientific notation for readability. ... The 1989 food riots were a series of riots and related episodes of looting in stores and supermarkets in Argentina, during the last part of the presidency of Raúl Alfonsín, between May and June 1989. ...

As Menem chose to deliver the Economy Ministry to senior executives of the firm Bunge y Born, he had to wait a few more years to put in practice his economic theories. In the meantime, as Menem's Foreign Minister, he was instrumental in the realignment of Argentina with the United States (1989–1991). Finally, after several false starts that caused renewed hyperinflation peaks, Menem put Cavallo at the helm of the Argentine economy. Bunge y Born was an Argentinian-based multinational corporation. ...

The Menem administration

Cavallo was the ideologist behind the Convertibility Plan, which created a currency board that fixed the dollar-peso exchange rate at 1 peso per dollar, being able to sustain it with an influx of funds that the Bonex plan brought into the State coffers, through the mandatory subscription of long term bonds to all bank depositors. At the cost of recession, Cavallo succeeded on stopping inflation and made some progress opening new prospects for foreign investment in Argentina through massive privatization that included the state oil monopoly YPF (now Repsol YPF), the telecoms monopoly; several electrical, gas and water companies; the state airlines; two television stations; 10,000 km of roads and some railway lines; steel and petrochemical firms, grain elevators, hotels and even racetracks. The state welfare system gave way to private pension schemes. The Argentine Currency Board pegged the Argentine peso to the U.S. dollar between 1991 and 2002 in an attempt to eliminate hyperinflation and stimulate economic growth. ... A recession is traditionally defined in macroeconomics as a decline in a countrys real Gross Domestic Product (GDP) for two or more successive quarters of a year (equivalently, two consecutive quarters of negative real economic growth). ... This article does not adequately cite its references or sources. ... YPFs logotype Yacimientos Petrolíferos Fiscales (YPF -means Fiscal Petroleum Fields-) was an Argentine state-owned oil company. ... Repsol YPF is an integrated oil and gas company with operations in 29 countries, principally Spain and Argentina. ...

Often derogatively accused of being a technocrat, on one famous occasion Cavallo got furious because of a report by demographer Susana Torrado in 1994, and publicly sent her and the scientist at the National Scientific and Technical Research Council to "go wash the dishes." Technocracy (techno for technology and cracy for power) is an organizational system in which decision makers and political leaders are selected on the basis of technological knowledge —often because of some conflict or competition where technological escalation is a constant feature. ... Map of countries by population Population growth showing projections for later this century Demography is the statistical study of human populations. ... The National Scientific and Technical Research Council (Spanish: Consejo Nacional de Investigaciones Científicas y Técnicas, CONICET) is an Argentine government agency which directs and co-ordinates most of the scientific and technical research done in public universities and institutes. ...

Independent

In 1996, shortly after Menem's reelection, theflux of money from privatisation ceased, and Cavallo was ousted from the cabinet, due to his volatile personality and fights with other cabinet members, coupled with staggering unemployment and social unrest caused by his economic policies. Since mid-1995, the former minister has denounced the existence of presumed "mafias" entrenched within the circles of power. After his relations between Menem and his collaborators became progressively more strained until Menem finally asked for his resignation. He went on founding the next year a political party, Acción por la República (Action for the Republic), which allowed him to return to Congress, this time as a Deputy for the city of Buenos Aires in the 1997 elections. 1996 (MCMXCVI) was a leap year starting on Monday of the Gregorian calendar, and was designated the International Year for the Eradication of Poverty. ... The Mafia (also referred to as Cosa Nostra or the Mob), is a criminal secret society which first developed in the mid-19th century in Sicily. ... For other uses, see Buenos Aires (disambiguation). ...

Cavallo ran for president in 1999 but was defeated by Fernando de la Rúa. He also ran for mayor of Buenos Aires, and lost to Aníbal Ibarra. Fernando de la Rúa Bruno (born September 15, 1937) is an Argentine politician. ... Aníbal Ibarra Aníbal Ibarra (born 1958-03-01) is an Argentine lawyer and politician from Lomas de Zamora, a district located in the southern region of Gran Buenos Aires. ...

De la Rúa and the crisis

In 2001, Cavallo was called by President de la Rúa to lead the economy once again. This time he faced a weak government and several months of recession. He tried to earn more time, renegotiating the external debt with the International Monetary Fund, but the growing country risk and the pressure of the main investors and foreign holdings led to a bank run and a massive capital flight. In 1 December 2001, Cavallo introduced a set of measures that blocked the usage of cash, informally known as the corralito ("little playpen"). The anger of a group of the society, integrated by middle-class members created a framework for the popular middle-class protest termed the cacerolazo. The pressure of the Peronist opposition and other interest groups also led to the December 2001 riots occured between 19-21 December 2001 primarly. But is is argued wether the cacerolazos were brought out by the general public, or if it was another political move by the opposition, specially Duhalde as there were people involved in the demonstrations that carried weapons and had their faces covered. This critical situation finally forced Cavallo, and then De la Rúa, to resign. 2001 (MMI) was a common year starting on Monday of the Gregorian calendar. ... [[Image:Example. ... Country risk refers to the likelihood that changes in the business environment adversely affects operating profits or the value of assets in a specific country. ... Seen in Asian markets in the 1990s capital flight is when assets and/or money rapidly flow out of a country. ... Corralito was the informal name for the economic measures taken in Argentina during 2001 by economy minister Domingo Cavallo in order to stop the draining of bank accounts. ... Demonstrators march in the street while protesting the World Bank and International Monetary Fund on April 16, 2005. ... Cacerolazo is the name of a popular form of protest that consists in a group of people creating noise by banging pots, pans and other utensils in order to call for attention. ... The December 2001 riots were a period of civil unrest and rioting in Argentina that took place during December of 2001, with the worst incidents taking place on December 20 and December 21, 2001, in Argentinas capital Buenos Aires. ...

A series of Peronist presidents came and left in the next few days, until Eduardo Duhalde took power on 1 January 2002. Soon afterwards the government decreed the end of peso-dollar convertibility, devalued the peso and soon afterwards let it float, which led to a swift depreciation (the exchange rate briefly reached 4 pesos per dollar in July 2002) and inflation (about 40% in 2002). Eduardo Alberto Duhalde Maldonado (born October 5, 1941) is a former president of Argentina. ... Devaluation is a reduction in the value of a currency with respect to other monetary units. ... A floating exchange rate or a flexible exchange rate is a type of exchange rate regime wherein a currencys value is allowed to fluctuate according to the foreign exchange market. ... Currency depreciation is the loss of value of a countrys currency with respect to one or more foreign reference currencies, typically in a floating exchange rate system. ...

Cavallo's policies are viewed by many as major causes of the de-industrialization and the rise of unemployment and poverty endured by Argentina in the 1990s, as well as the collapse of 2001, the ensuing default of the Argentine public debt and the consequences of the uncontrolled depreciation of the peso. For the band, see 1990s (band). ... The Argentine economic crisis was part of the situation that affected Argentinas economy during the late 1990s and early 2000s. ... In finance, default occurs when a debtor has not met its legal obligations according to the debt contract, e. ...

After the crisis

Between April and June 2002 Cavallo was jailed for alleged participation in illegal weapon sales during the Menem administration. But his accusations were quickly dimissed, as there was no clear evidence. Again this was seen as a way of calming the public opinion with nule measures. Moreover, it was particulary obscure, when then president Duhalde used to call Domingo who was in jail in order to ask him about what to do in terms of economic measures in early and mid 2002. 2002 : January - February - March - April - May - June - July - August - September - October - November - December A timeline of events in the news for April, 2002. ... 2002 : January - February - March - April - May - June - July - August - September - October - November - December A timeline of events in the news for June, 2002. ...

Cavallo is currently Robert Kennedy Visiting Professor in Latin American Studies at the Department of Economics of Harvard University.

External links

• Personal homepage (in Spanish and English)