The Return of the Interventionist Central Bank: The Pendulum of Monetary Regimes in Latin America

Abstract

This article reviews the history of monetary regimes and central banks in the periphery, with an emphasis on Latin America. It suggests that there has been a pendulum between situations in which integration into the global economy has increased, implementing monetary regimes that privilege the automaticity of monetary policy, with periods of affirmation of development, and emphasis on the need for intervention by central banks. The article suggests that the last two crises, and the renewal of the global financial cycle, mark a change in the international monetary regime and the need for a return from the interventionist central bank.

JEL classification: E58 ; F38 ; O54