01772cas a2200241 a 4500 AALejournalIMF003599 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451861334 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Latin American Central Bank Reform : Progress and Challenges. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (43 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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 1990s to single-digit territory in 2004. The paper also discusses the main challenges of monetary policy today, namely, achieving price stability, restoring market confidence in domestic currencies, and sticking to policy consistency despite adverse effects of the volatility of capital flows. Finally, recurrent banking crises and lack of fiscal discipline are identified as the main risks for the success of monetary policy in Latin America. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2005/114 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/114/001.2005.issue-114-en.xml IMF e-Library