The Three Stages of Central Bank Autonomy in Mexico

Turrent y Díaz Eduardo

No 2007-10, Working Papers from Banco de México

Abstract: Autonomy is not a new issue in the history of Banco de México. This paper presents how the concept of central bank autonomy has evolved through three main stages. In the first stage, known as statutory autonomy (1925-1938), autonomy was formalized through rules which established ceilings to the growth of key operative variables. The next stage, known as charismatic autonomy (1955-1970), relied on the defense by important political figures on the central bank´s role. Sound public finances were a significant aid in this stage. The end of sound public finances signaled the termination of the central bank´s charismatic autonomy. The last stage, known as institutional autonomy (1994 to date), is certainly more robust. Apart from having contributed to preserve sound public finances, the central bank´s institutional autonomy is based on a constitutional mandate that determines the central bank´s functions, a self-governing directive body, and administrative and budget independence.

JEL-codes: E50 N16 (search for similar items in EconPapers)
Date: 2007-07
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.banxico.org.mx/publicaciones-y-prensa/ ... -CC38663829BC%7D.pdf (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:bdm:wpaper:2007-10

Access Statistics for this paper

More papers in Working Papers from Banco de México Contact information at EDIRC.
Bibliographic data for series maintained by Subgerencia de desarrollo de sistemas ().