Restrict money issuance to foster stability

Pouring central bank money into Latin American financial systems in times of uncertainty fails to promote economic stability, research published by the International Monetary Fund states.

The paper reviews 26 financial shocks in Latin America from the mid 1990s onwards and finds that, except in a handful of cases, pouring in central bank money generally derailed monetary policy, fuelled further macroeconomic unrest and contributed to simultaneous currency crises.

In contrast, when central bank

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