I know that you can be a little confusing that something that fails to comply with the objective for which it has raison d ‘ etre, but the monetary policies of target inflation rate have not always recognized goals, despite the difficulties that have had to deal. A valuable element of IT policies for Latin America’s economies has been the confidence they have generated among citizens, the commitment of central bankers to the maintenance of price stability. This confidence has moderate inflationary expectations which have remained contained despite turbulent periods that have had to pass the economies and that have diverted to its target level retail inflation rates, and in some cases (such as Chile in 2008), even in a significant way. Credibility in the commitment of central banks in a target level of inflation, although it is not achieved in all cases, has allowed bankers implementation of unorthodox measures in these periods of crisis such as the intervention in the foreign exchange markets do so without having an impact on expectations inflationary. In addition to trust, the politics of IT increased transparency and responsibility in the actions of central banks, which is very valued by the market.

It is thus that the crisis was a test which showed that policies IT in fact have a greater flexibility than thought in theory as to the confidence and the commitment to price stability, it is credible. Temporary imposition of capital controls episodes were observed in this flexibility which allowed IT policies and that proved to have fitted this type of models, as it has been the case of Colombia, which sought to prevent sudden exchange rate jumps that could produce destabilising effects for the economy. The decision to implement capital controls by countries with a monetary driving geared explicitly towards a rate of inflation, which has been observed during the period of crisis leaves open the possibility that will recur in the case in which the exchange rate appreciation which is being produced in several currencies in the region, as it is the case of Chile and Brazil to name two of the most prominent, threaten macroeconomic stability.

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