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Latin American Central Bank Reform Progress and Challenges. [electronic resource] : - Washington, D.C. : International Monetary Fund, 2005. - 1 online resource (43 p.) - IMF Working Papers; Working Paper ; No. 05/114 . - IMF Working Papers; Working Paper ; No. 05/114 .

This study takes stock of the institutional reform of monetary policy in Latin America since the early 1990s. It argues that strengthening the legal independence of central banks, together with macroeconomic policies, was instrumental in reducing inflation from three-digit annual rates in the 1990s to single-digit territory in 2004. The paper also discusses the main challenges of monetary policy today, namely, achieving price stability, restoring market confidence in domestic currencies, and sticking to policy consistency despite adverse effects of the volatility of capital flows. Finally, recurrent banking crises and lack of fiscal discipline are identified as the main risks for the success of monetary policy in Latin America.

ISBN: 1451861338 : 15.00 USD

ISSN: 1018-5941

Standard No.: 10.5089/9781451861334.001 doi

Subjects--Topical Terms:
Central Bank
Central Banks
Domestic Currencies

Subjects--Geographic Terms:
Argentina
Brazil
Dominican Republic
Mexico
Uruguay