Improving the Monetary Policy Frameworks in Central America

Download or read book Improving the Monetary Policy Frameworks in Central America written by Stephanie Medina Cas and published by International Monetary Fund. This book was released on 2011-10-01 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Several Central American (CADR) countries with independent monetary policies are strengthening their monetary frameworks and some have implemented or are moving towards inflation targeting (IT) regimes. Strengthening the monetary policy frameworks of CADR is key to improving the effectiveness of monetary policy. The paper reviews the literature on the reforms needed for strengthening the monetary policy frameworks, and examines the experiences of IT countries, Chile, Peru, and Uruguay to help distill lessons for CADR. It also constructs an index to measure the relative strength of the monetary policy framework of CADR countries.