Legal Central Bank Independence and Inflation in Latin America During the 1990s
IMF Working Papers, December 1, 2001
Source details
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- Legal Central Bank Independence and Inflation in Latin America During the 1990s
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Bibliographic details
- Authors: Luis Ignacio Jácome
- Published: December 1, 2001
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451874891.001
Research objective and scope
- Reviews central banks’ legal reform in Latin America during the 1990s.
- Discusses the status of central bank independence in the region.
- Builds a simplified index of central bank independence that incorporates:
- political independence,
- economic independence,
- financial autonomy,
- accountability,
- lender-of-last-resort provisions.
Methodology (as described)
- Construction of a simplified index of legal central bank independence drawing on commonly used criteria and additional provisions (financial autonomy, accountability, lender-of-last-resort).
- Empirical analysis of the relationship between the constructed index and inflation for Latin American countries.
Key findings
- The paper finds a moderate negative correlation between increased central bank independence and inflation during 1999–2001 in 14 Latin American countries.
- Disaggregating the index indicates that economic independence is the key component driving the observed negative correlation between legal central bank independence and inflation.
Subjects and keywords
- Subjects: Banking, Central bank accountability, Central bank autonomy, Central bank legislation, Central banks, Inflation, Legal support in revenue administration, Prices, Revenue administration
- Keywords: capital integrity, Central America, Central bank accountability, central bank authority, Central bank autonomy, central bank bank transaction, central bank board of directors, central bank director, central bank governor, central bank independence, central bank involvement, Central bank legislation, central bank loss, central bank reform, exchange rate, financial statements, governance body, government paper, government participation, inflation, interest rate, Latin American countries, Legal support in revenue administration, recording central bank bank operation, WP
Access and formats
- Working Paper available on IMF eLibrary in multiple formats.
- Options noted on the page: Download PDF, More Formats on IMF eLibrary, Order a Print Copy, Create Citation, Share.
Source: IMF Working Paper "Legal Central Bank Independence and Inflation in Latin America During the 1990s" by Luis Ignacio Jácome, Working Paper No. 2001/212.
Content in this bundle
- Legal Central Bank Independence and Inflation in Latin America During the 1990s - WP/01/212