Abstract

VERNENGO, Matías. Observations on central banks in the center and the periphery: secular stagnation and external constraints. Prob. Des [online]. 2020, vol.51, n.202, pp.45-62.  Epub Nov 09, 2020. ISSN 0301-7036.  https://doi.org/10.22201/iiec.20078951e.2020.202.69635.

Historically, central banks have been instruments of economic development, yet in developed countries their position as guardians of macroeconomic orthodoxy and price stability has taken a predominant role. In an interconnected world, this limits the ability of central banks to play the same role in developing countries that their peers in developed countries played in the past. This article discusses the limits of modern central banks in the context of supposed secular stagnation, and the renewed external problem that some developing countries are facing as the commodity price supercycle ends. Recently, however, all of this has been complicated in the short term by the coronavirus (COVID-19) crisis.

Keywords : central banks; center-periphery; development instruments; secular stagnation; Latin America.

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