{
  "title": "Central Banking in Latin America: The Way Forward",
  "publication": "IMF Working Papers, September 30, 2016",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/central-banking-in-latin-america-the-way-forward-44317",
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  "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.",
  "sections": [
    {
      "heading": "Summary findings",
      "content": "- Latin America’s central banks have made substantial progress towards delivering an environment of price stability that is supportive of sustainable economic growth.\n- Where inflation remains high and volatile, achieving durable price stability will require making central banks more independent.\n- Where inflation targeting regimes are well-established, remaining challenges include:\n  - assessments of economic slack,\n  - the communication of monetary policy,\n  - clarifying the role of the exchange rate.\n- Macroprudential policies must be coordinated with existing objectives, and care taken to preserve the primacy of price stability."
    },
    {
      "heading": "Major themes and analysis",
      "content": "- Price stability and sustainable growth\n  - Central banks in the region have advanced toward environments that support sustainable economic growth while focusing on price stability.\n- Central bank independence\n  - High and volatile inflation cases indicate a need for increased central bank independence to achieve durable price stability.\n- Inflation-targeting regimes: operational challenges\n  - Well-established inflation-targeting regimes face challenges in measuring and responding to economic slack (output gap).\n  - Communication strategies for monetary policy require improvement to enhance credibility and effectiveness.\n  - The role of the exchange rate needs clearer definition within monetary policy frameworks.\n- Macroprudential policy coordination\n  - Macroprudential tools should be aligned with price stability objectives.\n  - Preserving the primacy of price stability is essential when implementing macroprudential measures."
    },
    {
      "heading": "Policy recommendations (implicit from discussion)",
      "content": "- Strengthen central bank independence in economies with high and volatile inflation to support durable price stability.\n- Improve assessment methods for economic slack to better inform inflation-targeting decisions.\n- Enhance communication of monetary policy to reinforce credibility of established regimes.\n- Clarify the exchange rate’s role within monetary policy frameworks, especially under inflation targeting.\n- Coordinate macroprudential policies with monetary policy objectives, prioritizing price stability."
    },
    {
      "heading": "Metadata and key statistics",
      "content": "- Authors: Yan Carriere-Swallow, Luis Ignacio Jácome, Nicolas E Magud, Alejandro M. Werner\n- Publication date: September 30, 2016\n- Series: Working Paper No. 2016/197\n- Volume: 2016\n- Issue: 197\n- Pages: 43\n- DOI: https://doi.org/10.5089/9781475543353.001\n- Stock No: WPIEA2016197\n- ISBN: 9781475543353\n- ISSN: 1018-5941\n- Subjects: Banking, Central bank autonomy, Central banks, Exchange rates, Financial sector policy and analysis, Financial sector stability, Foreign exchange, Foreign exchange intervention, Inflation, Prices\n- 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\n\nIMF Working Paper: Central Banking in Latin America: The Way Forward, Yan Carriere-Swallow, Luis Ignacio Jácome, Nicolas E Magud, Alejandro M. Werner; September 30, 2016; Working Paper No. 2016/197; DOI: https://doi.org/10.5089/9781475543353.001.\n\n---\n\n Content in this bundle\n\n- Central Banking in Latin America: The Way Forward\n  - Central Banking in Latin America: The Way Forward (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Central Banking in Latin America: The Way Forward (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/central-banking-in-latin-america-the-way-forward-44317"
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    "Authors: Yan Carriere-Swallow, Luis Ignacio Jácome, Nicolas E Magud, Alejandro M. Werner",
    "Published: September 30, 2016",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475543353.001",
    "Latin America’s central banks have made substantial progress towards delivering an environment of price stability that is supportive of sustainable economic growth.",
    "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 include:",
    "Macroprudential policies must be coordinated with existing objectives, and care taken to preserve the primacy of price stability.",
    "Price stability and sustainable growth",
    "Central bank independence",
    "Inflation-targeting regimes: operational challenges",
    "Macroprudential policy coordination",
    "Strengthen central bank independence in economies with high and volatile inflation to support durable price stability.",
    "Improve assessment methods for economic slack to better inform inflation-targeting decisions.",
    "Enhance communication of monetary policy to reinforce credibility of established regimes.",
    "Clarify the exchange rate’s role within monetary policy frameworks, especially under inflation targeting.",
    "Coordinate macroprudential policies with monetary policy objectives, prioritizing price stability.",
    "Authors: Yan Carriere-Swallow, Luis Ignacio Jácome, Nicolas E Magud, Alejandro M. Werner",
    "Publication date: September 30, 2016",
    "Series: Working Paper No. 2016/197",
    "Volume: 2016",
    "Issue: 197",
    "Pages: 43",
    "DOI: https://doi.org/10.5089/9781475543353.001",
    "Stock No: WPIEA2016197",
    "ISBN: 9781475543353",
    "ISSN: 1018-5941",
    "Subjects: 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",
    "**Central Banking in Latin America: The Way Forward**"
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