Improving the Monetary Policy Frameworks in Central America

Author/Editor: Stephanie Medina Cas ; Alejandro Carrión-Menéndez ; Florencia Frantischek
Publication Date: October 01, 2011
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: Several Central American (CADR) countries with independent monetary policies are strengthening their monetary frameworks and some have implemented or are moving towards inflation targeting (IT) regimes. Strengthening the monetary policy frameworks of CADR is key to improving the effectiveness of monetary policy. The paper reviews the literature on the reforms needed for strengthening the monetary policy frameworks, and examines the experiences of IT countries, Chile, Peru, and Uruguay to help distill lessons for CADR. It also constructs an index to measure the relative strength of the monetary policy framework of CADR countries.
Series: Working Paper No. 11/245
Subject(s): Inflation targeting | Latin America

Author's Keyword(s): monetary policy | inflation targeting | Central America | Latin America
Publication Date: October 01, 2011
ISBN/ISSN: 9781463923242/1018-5941 Format: Paper
Stock No: WPIEA2011245 Pages: 38
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