Inflation, currency substitution and dollarization: The case of Argentina

This dissertation discusses the relationship between inflation, currency substitution and dollarization that has taken place in Argentina for the past several decades.^ First, it is shown that when consumers are able to hold only domestic monetary balances (without capital mobility) an increase in the rate of inflation will produce a balance of payments deficit. We then look at the same issue but with heterogeneous consumers, this heterogeneity being generated by non-proportional lump-sum transfers.^ Second, we discussed some necessary assumptions related to currency substitution models and concluded that there was no a-priori conclusion on whether currencies should be assumed to be "cooperant" or "non-cooperant" in utility. That is to say, whether individuals held different currencies together or one instead of the other.^ Third, we went into discussing the issue of currency substitution as being a constraint on governments' inflationary objectives rather than a choice of those governments to avoid hyperinflations. We showed that imperfect substitutability between currencies does not "reduce the scope for rational (hyper)inflationary processes" as it had been previously argued. It will ultimately depend on the parametrization used and not on the intrinsic characteristics of imperfect substitutability between currencies.^ We further showed that in Argentina, individuals have been able to endogenize the money supply by holding foreign monetary balances. We argued that the decision to hold foreign monetary balances by individuals is always a second best due to the trade-off between holding foreign monetary balances and consumption. For some levels of income, consumption, and foreign inflation, individuals would prefer to hold domestic monetary balances rather than foreign ones.^ We then modeled the distinction between dollarization and currency substitution. We concluded that although dollarization is necessary for currency substitution to take place, the decision to use foreign monetary balances for transactions purposes is largely independent from the dollarization process.^ Finally, we concluded that Argentina should not fully dollarize its economy because dollarization is always a second best to using a domestic currency. Further, we argued that a fixed exchange system would be better than a flexible exchange rate or a "crawling-peg" system because of the characteristics of the political system and the possibilities of "mass praetorianism" to develop, which is intricately linked to "populist" solutions. ^

Brazil Under Dilma Rousseff: Similar Policy Directions Maintained.

It is unlikely that the newly elected government of Dilma Rousseff will make any fundamental changes to the major imperatives that underlie Brazilian policy: that is, macroeconomic stability and poverty alleviation. These policy imperatives have set the country on the road to good governance and have provided former presidents a chance to claim continuity. While President Rousseff of the Worker’s Party (PT) may have a distinct style, personality, and set of leadership skills compared to her predecessors, she is expected to maintain the core macroeconomic stability and social policies that are currently in place. Many who expected Rousseff to be former president Luiz Inácio “Lula” da Silva’s carbon copy are discovering that from day one she has showcased a different governing style than her mentor. She has emphasized her commanding authority and has brought about fresh approaches to delicate matters, which entail domestic economic issues and foreign policy. For example, her administration has aggressively applied a set of macro-prudential measures to counter inflationary pressures on the Brazilian currency (Real). And in foreign policy, she has steadfastly recalibrated Itamarity’s stance on the controversial issues, such as Iran, and now appears to have refocused its short-term efforts on cementing Brazil’s leadership role in the region’s southern cone.

On and Off the Stage at Atlanta Greek Picnic: Performances of Collective Black Middle-Class Identities and the Politics of Belonging

This dissertation presents a thick ethnography that engages in the micro-analysis of the situationality of black middle-class collective identification processes through an examination of performances by members of the nine historically black sororities and fraternities at Atlanta Greek Picnic, an annual festival that occurs at the beginning of June in Atlanta, Georgia. It mainly attracts undergraduate and graduate members of these university-based organizations, as they exist all over the United States. This exploration of black Greek-letter organization (BGLO) performances uncovers processes through which young black middle-class individuals attempt to combine two universes that are at first glance in complete opposition to each other: the domain of the traditional black middle-class values with representations and fashions stemming from black popular culture. These constructions also attempt to incorporate—in a contradiction of sorts— black popular cultural elements in the objective to deconstruct the social conservatism that characterizes middle-class values, particularly in relation to sexuality and its representation in social behaviors and performances. This negotiation between prescribed v middle-class values of respectability and black popular culture provides a space wherein black individuals challenge and/or perpetuate those dominant tropes through identity performances that feed into the formation of black sexual politics, which I examine through a variety of BGLO staged and non-staged performances.

Inflation, currency substitution, and dollarization : the case of Argentina

This dissertation discusses the relationship between inflation, currency substitution and dollarization that has taken place in Argentina for the past several decades. First, it is shown that when consumers are able to hold only domestic monetary balances (without capital mobility) an increase in the rate of inflation will produce a balance of payments deficit. We then look at the same issue but with heterogeneous consumers, this heterogeneity being generated by non-proportional lump-sum transfers. Second, we discussed some necessary assumptions related to currency substitution models and concluded that there was no a-priori conclusion on whether currencies should be assumed to be "cooperant" or "non-cooperant" in utility. That is to say, whether individuals held different currencies together or one instead of the other. Third, we went into discussing the issue of currency substitution as being a constraint on governments inflationary objectives rather than a choice of those governments to avoid hyperinflations. We showed that imperfect substitutability between currencies does not "reduce the scope for rational (hyper)inflationary processes" as it had been previously argued. It will ultimately depend on the parametrization used and not on the intrinsic characteristics of imperfect substitutability between currencies. We further showed that in Argentina, individuals have been able to endogenize the money supply by holding foreign monetary balances. We argued that the decision to hold foreign monetary balances by individuals is always a second best due to the trade-off between holding foreign monetary balances and consumption. For some levels of income, consumption, and foreign inflation, individuals would prefer to hold domestic monetary balances rather than foreign ones. We then modeled the distinction between dollarization and currency substitution. We concluded that although dollarization is necessary for currency substitution to take place, the decision to use foreign monetary balances for transactions purposes is largely independent from the dollarization process. Finally, we concluded that Argentina should not fully dollarize its economy because dollarization is always a second best to using a domestic currency. Further, we argued that a fixed exchange system would be better than a flexible exchange rate or a "crawling-peg" system because of the characteristics of the political system and the possibilities of "mass praetorianism" to develop, which is intricately linked to "populist" solutions.

On and off the stage at Atlanta Greek Picnic: Performances of collective black middle-class identities and the politics of belonging

This dissertation presents a thick ethnography that engages in the micro-analysis of the situationality of black middle-class collective identification processes through an examination of performances by members of the nine historically black sororities and fraternities at Atlanta Greek Picnic, an annual festival that occurs at the beginning of June in Atlanta, Georgia. It mainly attracts undergraduate and graduate members of these university-based organizations, as they exist all over the United States. This exploration of black Greek-letter organization (BGLO) performances uncovers processes through which young black middle-class individuals attempt to combine two universes that are at first glance in complete opposition to each other: the domain of the traditional black middle-class values with representations and fashions stemming from black popular culture. These constructions also attempt to incorporate—in a contradiction of sorts— black popular cultural elements in the objective to deconstruct the social conservatism that characterizes middle-class values, particularly in relation to sexuality and its representation in social behaviors and performances. This negotiation between prescribed v middle-class values of respectability and black popular culture provides a space wherein black individuals challenge and/or perpetuate those dominant tropes through identity performances that feed into the formation of black sexual politics, which I examine through a variety of BGLO staged and non-staged performances. ^