Project

About the project

This research project investigates the role of central banks in Latin America between 1931 and 1971—a period marked by global economic upheaval, political instability, and ambitious national development agendas. While central banks are once again at the center of economic policy debates today, particularly in light of their expanded role since the 2008 financial crisis and the Covid-19 pandemic, historical experiences remain underexplored—especially in the Latin American context. Our project aims to fill this gap by tracing how these institutions evolved in response to crises and shifting political regimes, and how they helped shape economic development across the region.

More than thirty years ago, Albert Hirschman pointed to a "conspiracy of silence" surrounding the legacy of Latin America’s developmental states—particularly the economic strategies pursued by central banks after World War II. Our project takes this observation as a starting point to re-examine the achievements and limitations of central banks during a transformative era. The project is organized around three core research axes: the coordination between credit policy and development goals, the role of central banks within financial systems, and the challenge of controlling inflation amid shifting political and institutional landscapes.

We compare five national case studies—Argentina, Chile, Colombia, Mexico, and Peru—and explore how central banks managed competing pressures: maintaining price stability, responding to inflation, allocating credit for development, and navigating the tensions between autonomy and political influence. These countries experienced a wide range of political regimes, from democracy to authoritarianism, and varied significantly in central bank ownership and institutional design. Through this comparative lens, our project seeks to uncover the historical roots of central bank behavior, institutional reform, and financial innovation in the region. In addition to academic publications, the project will feature workshops and public events to foster dialogue on how past experiences can inform present and future monetary challenges.