Question At the time Argentina had a pegged currency regime. How appropriate to use PPP in countries like Argentina where pegged currency regime is adopted?
Answer In the Argentine case, the peg was a short term solution. No long run plans were implemented. The PPP was unrealistic. Such plans may work if you have long term plans being implemented, otherwise they are a band aid solution. There are plenty of comments on line about the pitfalls of the Argentine case, should you be interested in reading further. Thank you for your query. Good luck.
