In 1991, Argentina established a radical institutional reform after experiencing a decade marked by financial instability. This program was called the new Convertibility Law. What did this law do?

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The new Convertibility Law made Argentina's currency fully convertible into U.S. dollars at a fixed rate and required that the monetary base be backed completely by gold or foreign currency. This meant that the Argentine peso was pegged to the U.S. dollar at a one-to-one exchange rate, and Argentina's central bank had to hold enough U.S. dollars or gold to back its monetary base. This policy was meant to bring stability to the country's economy and reduce inflation.

In 1991, Argentina Established a Radical Institutional Reform After Experiencing