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  • The quest for price stability in Central America and the Dominican Republic
    Jácome, Luis Ignacio ; Parrado, Eric
    This paper addresses the question of why inflation has not yet converged to price stability in Central America and the Dominican Republic and is currentlyrelatively high by Latin American standards. ... It suggests that despitethe institutional strengthening of monetary policy, important flaws remain in most central banks, in particular a lack of a clear policy mandate and little political autonomy, which are adversely affecting the consistency of policy implementation. Empirical analysis reveals that all central banks raise interest rates to curtail inflation but only some of them increase it sufficiently to effectively tackle inflation pressures. It also shows that some central banks care simultaneously about exchange rate stability. The potential policy conflict arising from a dual central bank mandate and the unpredictable policy response is probably undermining markets' confidence in central banks' commitment to price stability, thereby perpetuating an inflation bias.
    Type of material - book
    Publication and manufacture - Washington : International Monetary Fund, 2007
    Language - english
    COBISS.SI-ID - 17265382

    Link(s):

    http://www.imf.org/external/pubs/ft/wp/2007/wp0754.pdf

Library Call number – location, accession no. ... Copy status
EF, Central Economics Library, Ljubljana Skladišče II 12065/07 see publication
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