The first of these pillars is largely determined by our recent history: in Argentina, monetary regimes have unsuccessfully shifted from one extreme to the other.
While in the 1980s money supply was rising uncontrollably in line with the monetization of the fiscal deficit, in the past decade the strictures of the convertibility regime were neither consistent with the economy’s flexibility nor with the fiscal behavior. What mattered was not the label of the regime, but the internal consistency of its policies.