IDEAS home Printed from https://ideas.repec.org/a/chb/bcchec/v8y2005i3p5-27.html
   My bibliography  Save this article

Eighty Years of History of the Central Bank of Chile

Author

Listed:
  • Vittorio Corbo L.
  • Leonardo Hernández T.

Abstract

The Central Bank of Chile was founded in 1925, to provide the country with an institution that could stabilize the currency, regulate interest and discount rates, and avoid disruptions in the country’s financial, industrial and economic development (Decree Law Nº486, August 22, 1925). But a weak institutional framework meant that the Bank, far from ameliorating these problems, aggravated them, leading to decades of high and persistent inflation. Inflation became under control only during the past decade, after a new law enacted in 1989 granted the Central Bank with full independence, allowing it to implement an Inflation Targeting Monetary Policy Regime. In achieving this result were also fundamental the fiscal stability and the building of a robust financial sector, both attained since the mid 1980s. This paper reviews the history of the Central Bank of Chile since its early days, putting its changes in the appropriate historical context.

Suggested Citation

  • Vittorio Corbo L. & Leonardo Hernández T., 2005. "Eighty Years of History of the Central Bank of Chile," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 8(3), pages 5-27, December.
  • Handle: RePEc:chb:bcchec:v:8:y:2005:i:3:p:5-27
    as

    Download full text from publisher

    File URL: http://si2.bcentral.cl/public/pdf/revista-economia/2005/dic/Vol8N3dic2005pp5_27.pdf
    Download Restriction: no

    Other versions of this item:

    Citations

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:chb:bcchec:v:8:y:2005:i:3:p:5-27. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Sepulveda). General contact details of provider: http://edirc.repec.org/data/bccgvcl.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.