Central banking in Latin America: past, present and challenges ahead

This chapter deals with the evolving role of central banks in Latin America and discusses the past, the present, and the main challenges that lay ahead. The chapter identifies three key periods: the early years; the developmental phase; and the golden years. The analysis highlights central banks’ institutional arrangements and the monetary policy framework in place throughout those periods, and how they played a critical role on the rise and fall of inflation and on periods of banking and currency crises. It also discusses current and future challenges facing Latin American central banks in the aftermath of the global financial crisis.