Editing Exchange rate (section)

===Emerging markets===
Research on [[target zones]] has mainly concentrated on the benefit of stability of exchange rates for industrial countries, but some studies have argued that volatile bilateral exchange rates between industrial countries are in part responsible for financial crisis in emerging markets. According to this view the ability of emerging market economies to compete is weakened because many of the currencies are tied to the US dollar in various fashions either implicitly or explicitly, so fluctuations such as the appreciation of the US dollar to the yen or deutsche Mark have contributed to destabilizing shocks. Most of these countries are net debtors whose debt is denominated in one of the [[G3 currencies]].<ref>{{cite book |title=Preventing Currency Crises in Emerging Markets |url=https://books.google.com/books?id=3-Q7YUOi72gC&pg=PA133 |access-date=7 September 2019|isbn = 9780226185057|last1 = Edwards|first1 = Sebastian|last2 = Frankel|first2 = Jeffrey A.|date = 2009-02-15| publisher=University of Chicago Press }}</ref>

In September 2019 Argentina restricted the ability to buy US dollars. [[Mauricio Macri]] in 2015 campaigned on a promise to lift restrictions put in place by the left-wing government including the [[capital controls]] which have been used in Argentina to manage economic instability. When inflation rose above 20 percent transactions denominated in dollars became commonplace as Argentines moved away from using the peso. In 2011 the government of [[Cristina Fernández de Kirchner]] restricted the purchase of dollars leading to a rise in black market dollar purchases. The controls were rolled back after Macri took office and Argentina issued dollar denominated [[Bond (finance)|bonds]], but when various factors led to a loss in the value of the peso relative to the dollar leading to the restoration of capital controls to prevent additional [[Currency appreciation and depreciation|depreciation]] amidst peso selloffs.<ref>{{cite news |title=Argentina just reinstated foreign currency restrictions. Here's what you need to know. |url=https://beta.washingtonpost.com/politics/2019/09/06/argentina-just-reinstated-foreign-currency-restrictions-heres-what-you-need-know/?noredirect=on |access-date=8 September 2019 |newspaper=The Washington Post}}</ref>