But Argentina was not as productive as the United States (US), despite the peg giving them a similar inflation rate. Eventually, Argentina could not afford to maintain the peg, as the peso’s value was under pressure to fall and the country had no reserves left.
5  See Borio and Lowe (2002, 2004), Borio, English and Filardo (2003), Borio (2005) and White (2006). 6  See Detken and Smets (2004) and Adalid and Detken (2006). For a more detailed discussion see Trichet (2005c) and ECB (2005).