Domingo Cavallo, as new Minister of the Economy in 1991, announces "Convertibility" including: 1. Currency board . Purpose: pegging dollar-peso exchange rate at 1:1 2. Privatization . Intended to increase efficiency, resulted in mass layoffs 3. Tax evasion crackdown . Trying to make up for smaller tax base and falling tax revenues 4. Removal of price controls . Supposed to allow for market clearing, resulted in large inflation