The role of the bonds issued by the Central Bank in the last 20 years of Argentine monetary policy

Working papers| 2023 | N 107

Abstract

This work focuses on the implementation of the monetary policy by the Central Bank of Argentina from the end of the convertibility period to the present day. During this process, the issuance of interest-bearing liabilities was a central element that provided operational autonomy to the Central Bank to implement its monetary policy within diverse macroeconomic contexts. In order to recover this history, which holds many lessons for the present and near future, an analysis is carried out from three different perspectives. In the first section, stylized changes in balance sheets due to various monetary sterilization operations are described. The second section compiles the different regulatory modifications that were introduced regarding the bonds issued by the Central Bank. Finally, in the third section, the recent history of monetary policy and the economic framework in which the issuance of Central Bank's own bonds occurred is reviewed

JEL classification: E52 ; E58