liabilities, which in turn limits the ability of the Central Bank to conduct an optimal monetary policy. In addition the economy … type of the monetary authority. The model has clear-cut policy implications regarding the taxation of foreign currency … literature on the determinants of foreign currency liabilities and their relationships to Central Bank credibility …

"This ground-breaking book analyses the severe monetary policy challenges facing Latin American countries. Contributors … reflect on how these issues should be addressed by policy-makers, identifying the need for a synergic response from regional … appreciation, and falling commodity prices. Chapters focus on key elements of monetary policy, including transmission channels …