Central Banking in Latin America: The Way Forward

Yan Carrière-Swallow, Luis Jácome, Nicolas Magud and Alejandro Werner

No 2016/197, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; financial crisis; central bank independence; interest rate; output gap; reaction function; Central Banking; Monetary Policy; Macroprudential Policy; Latin America; inflation expectation; a number of central banks; exchange rate volatility; inflation-targeting regime; volatility issue; Inflation; Foreign exchange intervention; Exchange rates; Financial sector stability; Central bank autonomy; Global; Central America (search for similar items in EconPapers)
Pages: 43
Date: 2016-09-30
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Citations: View citations in EconPapers (6)

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