Inflation Targets in Latin America

Working Paper
19-19
November 2019
Photo Credit: 
REUTERS/Sergio Moraes

Many emerging-market economies have adopted inflation targeting regimes since they were introduced by New Zealand in 1990. Latin America has not been the exception. Currently eight Latin American countries conduct monetary policy through inflation targeting regimes: Brazil, Chile, Colombia, Guatemala, Mexico, Paraguay, Peru, and Uruguay. This paper reviews the history of chronic inflation in Latin America and describes these countries’ experience with inflation targets and their performance during the global financial crisis.

Data Disclosure: 

The data underlying this analysis are available here. Proprietary data have been excluded.