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Central Banking in Latin America: From the Gold Standard to the Golden Years
Author: Mr. Luis Ignacio Jácome
Series:
IMF Working Papers
Volume/Issue:
Volume 2015: Issue 060
Language:
English
Publication Date:
17 Mar 2015
DOI:
https://doi.org/10.5089/9781484303184.001
ISBN:
9781484303184
ISSN:
1018-5941
Pages:
57
Keywords:
WP; central bank; government; country; gold standard; Latin America; central banks; inflation; U.S. dollar; adjustable peg; financing to the government; central bank financing; government financing; inflation rate; central bank independence; central banks in Latin America; International reserves; Currencies; Central bank legislation; Central America; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper provides a brief historical journey of central banking in Latin America to shed light on the debate about monetary policy in the post-global financial crisis period. The paper distinguishes three periods in Latin America’s central bank history: the early years, when central banks endorsed the gold standard and coped with the collapse of this monetary system; a second period, in which central banks turned into development banks under the aegis of governments at the expense of increasing inflation; and the “golden years,” when central banks succeeded in preserving price stability in an environment of political independence. The paper concludes by cautioning against overburdening central banks in Latin America with multiple mandates as this could end up undermining their hard-won monetary policy credibility.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund