ABSTRACT
Immediately after the defeat of Argentine forces in the South Atlantic War in June 1982, the political parties demanded a return to democracy. General Bignone did try to solve the financial crisis, but the focus of his government was on establishing an electoral process that would allow a return to civilian power. Raul Alfonsin is widely recognized as the main architect of recreating Argentina's democratic institutions; but his relationship with the labour movement was highly conflictive and various economic crises he had to confront cast a shadow over his leadership. From an economic point of view, the break with some of the economic policies of the military government began in General Bignone's transition period; this chapter begins with his government. Jorge Wehbe was the last economic minister of the military government. The most obvious and commonly used coordination mechanism to reduce and even eliminate inflation expectations was the nominal exchange rate.
