This study takes stock of the institutional reform of monetary policy in Latin America since the early 1990s. It argues that strengthening the legal independence of central banks, together with macroeconomic policies, was instrumental in reducing inflation from three-digit annual rates in the...

This study takes stock of the institutional reform of monetary policy in Latin America since the early 1990s. It argues that strengthening the legal independence of central banks, together with macroeconomic policies, was instrumental in reducing inflation from three-digit annual rates in the...

Mexico is the only country in Latin America that has maintained a floating exchange rate regime for a relatively long period of time. Therefore the study of Mexico’s experience could provide useful lessons for other emerging economies. The paper analyses

Given that the real exchange rate is an endogenous variable, this paper test the hypothesis that the effect on economic activity following a real devaluation will depend not only on its direct impact on relative prices and income, but also on the nature of the shock producing the external...