IMF Working Papers

Central Banking in Latin America: The Way Forward

By Yan Carriere-Swallow, Luis Ignacio Jácome, Nicolas E Magud, Alejandro M. Werner

September 30, 2016

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Yan Carriere-Swallow, Luis Ignacio Jácome, Nicolas E Magud, and Alejandro M. Werner Central Banking in Latin America: The Way Forward, (USA: International Monetary Fund, 2016) accessed November 8, 2024
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

Latin America’s central banks have made substantial progress towards delivering an environment of price stability that is supportive of sustainable economic growth. We review these achievements, and discuss remaining challenges facing central banking in the region. Where inflation remains high and volatile, achieving durable price stability will require making central banks more independent. Where inflation targeting regimes are well-established, remaining challenges surround assessments of economic slack, the communication of monetary policy, and clarifying the role of the exchange rate. Finally, macroprudential policies must be coordinated with existing objectives, and care taken to preserve the primacy of price stability.

Subject: Banking, Central bank autonomy, Central banks, Exchange rates, Financial sector policy and analysis, Financial sector stability, Foreign exchange, Foreign exchange intervention, Inflation, Prices

Keywords: A number of central banks, Central America, Central bank autonomy, Central bank independence, Central Banking, Exchange rate volatility, Exchange rates, Financial crisis, Financial sector stability, Foreign exchange intervention, Global, Inflation, Inflation expectation, Inflation-targeting regime, Interest rate, Latin America, Macroprudential Policy, Monetary Policy, Output gap, Reaction function, Volatility issue, WP

Publication Details

  • Pages:

    43

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

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  • Series:

    Working Paper No. 2016/197

  • Stock No:

    WPIEA2016197

  • ISBN:

    9781475543353

  • ISSN:

    1018-5941