Domingo Cavallo Comments on 2015 Argentine Elections

Part of  an ongoing series “Argentina at a Crossroads” in the run up to general elections in 2015. 

I recently had the opportunity to speak with two-time former Argentine Minister of the Economy Domingo Cavallo in Buenos Aires. As part of a broader discussion on the Argentine economy, we talked about the upcoming Argentine elections, slated for October 2015.

In his first stint as Minister from 1991 to 1996, Cavallo famously implemented the Convertibility Plan that fixed the value of one Argentine peso at one US dollar. The plan at first proved extremely effective, bringing Argentina’s runaway inflation to a screeching halt, and setting the stage for a few years of strong growth.

However, the strategy ultimately proved unsustainable, and not even Cavallo himself could save it. He returned to the Ministry of Economy just as the plan crumbled in 2001, and as Argentina spiraled into a devastating economic crisis. He remains a controversial figure in Argentina.

Of course, it goes without saying that that I neither endorse nor reject his perspective. Domingo Cavallo, is, however, without a doubt a historic figure in Argentine political-economics, so I valued his input on the 2015 presidential elections, which will likely be transformative for Argentina.

 Samuel George is political economist specializing in Latin America. 

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