The Three Stages of Central Bank Autonomy in Mexico
AbstractAutonomy is not a new issue in the history of Banco de México. This paper presents how the concept of central bank autonomy has evolved through three main stages. In the first stage, known as statutory autonomy (1925-1938), autonomy was formalized through rules which established ceilings to the growth of key operative variables. The next stage, known as charismatic autonomy (1955-1970), relied on the defense by important political figures on the central bank´s role. Sound public finances were a significant aid in this stage. The end of sound public finances signaled the termination of the central bank´s charismatic autonomy. The last stage, known as institutional autonomy (1994 to date), is certainly more robust. Apart from having contributed to preserve sound public finances, the central bank´s institutional autonomy is based on a constitutional mandate that determines the central bank´s functions, a self-governing directive body, and administrative and budget independence.
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Bibliographic InfoPaper provided by Banco de México in its series Working Papers with number 2007-10.
Date of creation: Jul 2007
Date of revision:
Central bank independence;
Find related papers by JEL classification:
- N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean
- E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
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