Argentina's monetary base

I was watching Argentina's daily change in monetary base for a selected period and there is a clear spike at the beginning on each month. Then during the month it slowly goes down until reaching similar nominal levels at the end of each month. Why is there a spike?

I had the hypothesis that the spikies were because of businesses redemptions in T+1 mutual funds in order to pay for wages, but on August 1st "the spike" was actually negative.

Context: during the selected period Argentina was doing a contractionary monetary policy and transfers from the Central Bank to the Federal government were forbidden.


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.