Adoption of the Inflation Target Scheme in Costa Rica

Evelyn Muñoz-Salas ()
Additional contact information
Evelyn Muñoz-Salas: Department of Economic Research, Central Bank of Costa Rica Author-Name: Carlos Monge-Badilla

No 1801, Notas Técnicas from Banco Central de Costa Rica

Abstract: The Organic Law of the Central Bank of Costa Rica (BCCR) article 2, stablishes as its main objectives as ... to maintain the internal and external stability of the national currency and ensure its conversion to other currencies ... (Law 7558, 1995). In this context, internal stability is understood as providing low and stable inflation. During the first decade after this Law was passed (1995-2004) inflation remained in double-digit values (12.4% as an annual average), which contrasts with an average of 4.0% for the inflation of Costa Rica´s main trading partners. ***Resumen: La Ley Orgánica del Banco Central de Costa Rica (BCCR), en su artículo 2, le confiere como principales objetivos “…mantener la estabilidad interna y externa de la moneda nacional y asegurar su conversión a otras monedas…” (Ley 7558, 1995). La estabilidad interna se asocia con proveer una inflación baja y estable. Si se valora el desempeño inflacionario del país a partir del año de promulgación de esa ley y hasta el 2004, la inflación se mantuvo en valores de dos dígitos (12,4 % como promedio anual), que contrasta con un promedio de 4,0% de los principales socios comerciales de Costa Rica para igual periodo.

Keywords: Monetary Regime; Central Banking; Régimen Monetario; Banca Central (search for similar items in EconPapers)
JEL-codes: E42 E58 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2018-02
References: Add references at CitEc
Citations:

Published

Downloads: (external link)
https://repositorioinvestigaciones.bccr.fi.cr/item ... 6b-a53a-6f67dca69e4f (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:apk:nottec:1801

Access Statistics for this paper

More papers in Notas Técnicas from Banco Central de Costa Rica Contact information at EDIRC.
Bibliographic data for series maintained by Departamento de Investigación Económica ().