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Improving the Monetary Policy Frameworks in Central America

Author

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  • Ms. Stephanie C Medina Cas
  • Mr. Alejandro Carrion-Menendez
  • Ms. Florencia Frantischek

Abstract

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.

Suggested Citation

  • Ms. Stephanie C Medina Cas & Mr. Alejandro Carrion-Menendez & Ms. Florencia Frantischek, 2011. "Improving the Monetary Policy Frameworks in Central America," IMF Working Papers 2011/245, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2011/245
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    References listed on IDEAS

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    Cited by:

    1. David Vavra, 2015. "Inflation Targeting Experience: Lessons for Ukraine," Visnyk of the National Bank of Ukraine, National Bank of Ukraine, issue 233, pages 39-53.
    2. -, 2016. "Centroamérica y República Dominicana: evolución económica en 2015 y perspectivas para 2016. Balance preliminar," Sede Subregional de la CEPAL en México (Estudios e Investigaciones) 39887, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

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