Central Banking in Latin America : From the Gold Standard to the Golden Years

Author/Editor:

Luis Ignacio Jácome

Publication Date:

March 17, 2015

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

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:

This paper provides a brief historical journey of central banking in Latin America to shed light on the debate about monetary policy in the post-global financial crisis period. The paper distinguishes three periods in Latin America’s central bank history: the early years, when central banks endorsed the gold standard and coped with the collapse of this monetary system; a second period, in which central banks turned into development banks under the aegis of governments at the expense of increasing inflation; and the “golden years,” when central banks succeeded in preserving price stability in an environment of political independence. The paper concludes by cautioning against overburdening central banks in Latin America with multiple mandates as this could end up undermining their hard-won monetary policy credibility.

Series:

Working Paper No. 15/60

Subject:

English

Publication Date:

March 17, 2015

ISBN/ISSN:

9781484303184/1018-5941

Stock No:

WPIEA2015060

Format:

Paper

Pages:

57

Please address any questions about this title to publications@imf.org