Inflation Targeting in Latin America: Toward a Monetary Union?

40 Pages Posted: 11 Oct 2009


In recent years, five of the main economies in Latin America - Brazil, Chile, Mexico, Colombia and Peru - have adopted Inflation Targeting regimes. In the context of these converging monetary strategies, would the IT nations in the region be better o adopting a common currency? Would they be better off if they dollarize? Would a common currency be a better alternative than dollarization? The answers to these questions are yes, yes and maybe.

Keywords: Monetary Union, Inflation Targeting, Latin America, Monetary Policy

JEL Classification: E31, E32, E42, E58

Suggested Citation

Hofstetter, Marc, Inflation Targeting in Latin America: Toward a Monetary Union?. Documento CEDE No. 2009-17, Available at SSRN: or

Marc Hofstetter (Contact Author)

Universidad de los Andes ( email )

Carrera Primera # 18A-12
Bogota, DC D.C. 110311

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