Analysis of the debate on the use of rules against discretion in Monetary policy and on the role of the Central Bank: Experiences in Brazil and Argentina during the period 1990-2018.
Monetary Policy, Orthodox, Heterodox, Rules, Discretion, Central Bank, Argentina, Brazil.
The debate over the best way to conduct monetary policy is particularly relevant in Latin America, where the high inflation rates experienced in some of its countries is a recurrent problem. The article seeks to understand the main views of the debate, of both orthodox and heterodox schools of economic thought, regarding how a country's monetary policy should be conducted, giving special emphasis to the role that the Central Bank must fulfill. Firstly, a brief review of the main points of the rules versus discretion debate will be made. Secondly, the different economic theories of inflation will be explained. Finally, we will analyze the performance of Argentina and Brazil in relation to the different monetary policies carried out during the period 1990-2018.