Structural Change and Monetary Policy in Latin America — Possible Lessons for Other Developing Countries

  • Victor L. Urquidi
Part of the International Economic Association Series book series (IEA)


The purpose of this paper is to explore the significance and orientation of monetary policy in developing countries in the present day context, by trying to draw some lessons from the Latin American experience. This is really a very broad subject and it involves a number of basic assumptions, just as it also has to take into account a typology of developing countries. Not only do economic structures in developing countries differ, but the institutions through which development policy and the many specific aspects of monetary and financial policy are carried out also vary. Some countries, in Latin America and Asia, have had a long tradition of monetary and banking institutions and a considerable experience in the development and implementation of monetary policy. Others have only recently evolved from the rather simple mechanisms by which monetary control was to some extent managed in the pre-independence period, for instance, in many African and several smaller Asian economies. Central banks also differ in their nature and functions, and it is not easy to draw general conclusions as to their rôle in economic development.


Monetary Policy Fiscal Policy Banking System Commercial Bank Money Supply 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Baer, W. and Kerstenetsky, I. (1964) (eds), Inflation and Growth in Latin America, (Homewood, Ill: Richard D. Irwin).Google Scholar
  2. Banco Central de la República Argentina, Annual reports, 1935–43.Google Scholar
  3. Banco de la República, Colombia (1982) ‘El manejo de la política monetaria ante las innovaciones financieras’, paper presented by Francisco J. Ortega at the 19th Meeting of Governors of Central Banks of the American Continent, Quito, Ecuador, March 1982. Reprinted in Centro de Estudios Latinoamericanos, Mexico, Boletín, vol. XXVIII, no. 3, pp. 123–8.Google Scholar
  4. Banco de México, Annual reports.Google Scholar
  5. Banco de México (1946) Primera Reunión de Técnicos de Banca Central del Continente Americano.Google Scholar
  6. Barnet, R. and Muller, R. (1974) Global Reach — The Power of Multinational Corporations (New York: Simon & Schuster).Google Scholar
  7. Bazant, J. (1968) Historia de la Deuda Exterior de México (1823–1946) (México: El Colegio de México).Google Scholar
  8. Brothers, D. S., and Solís, L. (1966) Mexican Financial Development (Austin: University of Texas Press).Google Scholar
  9. Bueno, G. et al. (1977) Opciones de política económica en Mexico después de la devaluación (México: Editorial Tecnos).Google Scholar
  10. Castillo, A. V. (1979) Monetary, Banking and Economic Problems of the Philippines (Manila: Central Bank of the Philippines).Google Scholar
  11. CEPAL (UN Economic Commission for Latin America (ECLA) (1981)) La industrialización de América Latina.Google Scholar
  12. De Kock, M. H. (1955) Central Banking. 3rd ed. There is a Spanish translation Banca Central, with an appendix on the Bank of Mexico, by Raúl Martínez Ostos, and one on the Central Bank of Argentina, by Jesús Prados Arrarte (Mexico: Fondo de Cultura Económica).Google Scholar
  13. Ferrer, A. (1981) ‘El monetarismo en Argentina y Chile’, Comercio Exterior.Google Scholar
  14. Ferrer, A. (1967) The Economy of Argentina (Berkeley: University of California Press).Google Scholar
  15. Ferrer, A. (1982) ‘Monetarismo en el Cono Sur: el caso argentino’, in Pensamiento Económico — Revis ta de Economía Político, no. 1, pp. 109–15.Google Scholar
  16. Furtado, C. (1963) The Economic Growth of Brazil: A Survey from Colonial to Modern Times (Berkeley, University of California Press).Google Scholar
  17. Furtado, C. (1982) ‘Transnacionalizaçào e monetarismo’, in Pensamiento Iberoamericano — Revista de Economía Política, no. 1, pp. 13–44.Google Scholar
  18. Griffith-Jones, S. and Seers, D. (eds) (1981) ‘“Monetarism”: Its Effects on Developing Countries’, Institute of Development Studies, University of Sussex, Bulletin, vol. 13, no. 1.Google Scholar
  19. Grove, D. L. (1955) Política monetaria en países subdesarrollados (Mexico: Centro de Estudios Monetarios Latinoamericanos).Google Scholar
  20. Grunwald, J. (1961) ‘The Structuralist School on Price Stability and Development: The Chilean Case’, in Hirschman, A. O. (ed), Latin American Issues (New York: Twentieth Century Fund).Google Scholar
  21. Hansen, A. H. (1949) Monetary Theory and Fiscal Policy (New York: McGraw-Hill).Google Scholar
  22. Hirschman, A. O. (1963) Journeys Towards Progress: Studies in Economic Policy-Making in Latin America (New York: Twentieth Century Fund).Google Scholar
  23. Hirschman, A. O. (1958) The Strategy of Economic Development (New Haven: Yale University Press), chapter 9.Google Scholar
  24. Hirschman, A. O., (ed) (1961) Latin American Issues (New York: Twentieth Century Fund).Google Scholar
  25. Hirschman, A. O. (1980) ‘La matriz social y la política de la inflación: elaboratión sobre la experiencia latinoamericana’, El Trimestre Económico, vol. XLVII, núm. 187, pp. 679–709. (Also to be published in a volume by The Brookings Institution, Washington.)Google Scholar
  26. Kaldor, Nicholas (1960) Report on Mexican Tax Reform, mimeo.Google Scholar
  27. Laidler, D. (1982) ‘Monetarism: An Interpretation and an Assessment’, The Economic Journal, vol. 91, no. 361, pp. 1–28. Spanish translation in Centro de Estudios Monetarios Latinoamericanos, Mexico, Boletín, vol. XXVIII, no. 2, pp. 67–87.CrossRefGoogle Scholar
  28. Mayobre, J. A. (1982) ‘La política monetaria y el desarrollo económico’, in Mayobre, J. A. and Escogidas, O. (eds), Banco Central de Venezuela, Colección de Estudios Económicos, no. 9, pp. 47–60.Google Scholar
  29. Mosk, S. (1950) Industrial Revolution in Mexico (Berkeley: University of California Press).Google Scholar
  30. Noyola Vázquez, J. F. (1956) ‘El desarrollo económico y la inflación en México y en otros paises latinoamericanos’, Investigación Económica, 4th quarter, pp. 602–48.Google Scholar
  31. Prebisch, R. (1944) El patrón oro y la vulnerabilidad económica de nuestros países, El Colegio de México, Jornadas no. 11.Google Scholar
  32. Prebisch, R. (1982) ‘El falso dilema entre desarrollo económico y estabilidad monetaria’, reprinted in Gurrieri, A. La obra de Prebisch en la CEPAL Mexico: Fondo de Cultura Económica) Colección Lecturas, vol. 2, no. 45, pp. 9–71.Google Scholar
  33. Prebisch, R. (1982a) ‘El retorno de la ortodoxia’, in Pensamiento Iberoamericano — Revista de Economía Política, no. 1, pp. 73–8.Google Scholar
  34. Seers, D. (1962) ‘A Theory of Inflation and Growth in Underdeveloped Economies based on the Experience of Latin America’, Oxford Economic Papers, vol. 14, no. 2, pp. 173–95.Google Scholar
  35. Solís, L. (1971) La realidad económica mexicana: retrovisión y perspectivas, México, Editorial Siglo XXI.Google Scholar
  36. Suárez, E. (1977) Comentarios y recuerdos — 1926–1946 (México: Porrúa).Google Scholar
  37. Sunkel, O. (1958) ‘La inflación chilena — un enfoque heterodoxo’, El Trimestre Económico, vol. 25, no. 4, pp. 570–99.Google Scholar
  38. Tobin, J. (1981) ‘The Monetarist Counter-Revolution Today: An Appraisal’, The Economic Journal, vol. 91, no. 361, pp. 29–42. Spanish translation in Centra de Estudios Monetarios Latinoamericanos, Mexico, Boletín, vol. XXVIII, no. 2, 1982, pp. 57–66.CrossRefGoogle Scholar
  39. Triffin, R. (1944) ‘Central Banking and Monetary Regulation in Latin America’, in Harris, S. (ed.) Economic Problems of Latin America (New York: McGraw-Hill), chapter IV.Google Scholar
  40. Urquidi, V. L. (1946) ‘Tres lustros de experiencia monetaria mexicana — algunas enseñanzas’, in Memoria del Segundo Congreso Mexicano de Ciencias Sociales, vol. II, pp. 423–73.Google Scholar
  41. Urquidi, V. L. (1951) ‘El papel de la política fiscal y monetaria en el desarrollo económico’, El Trimestre Económico, vol. XVIII, no. 4, pp. 636–53.Google Scholar
  42. Urquidi, V. L. (1964) The Challenge of Development in Latin America (New York, London: Praeger), chapter 3.Google Scholar
  43. Urquidi, V. L. (1981) Perspectiva de los problemas financieros de América Latina y el Caribe. Paper submitted to the Latin American Institute of Capital Markets, 2nd International Conference on Financial Development in Latin America and the Caribbean, Caraballeda, Venezuela, 2–4 April.Google Scholar
  44. Vernon, R. (1971) Sovereignty at Bay: The Multinational Spread of US Enterprises (New York: Basic Books).Google Scholar

Copyright information

© International Economic Association 1987

Authors and Affiliations

  • Victor L. Urquidi
    • 1
  1. 1.El Colegio de MéxicoMexico

Personalised recommendations