MONGABAY.COM
Mongabay.com seeks to raise interest in and appreciation of wild lands and wildlife, while examining the impact of emerging trends in climate, technology, economics, and finance on conservation and development (more)
WEEKLY NEWSLETTER
|
|
Chile
Index
The Central Bank of Chile, like the Office of the
Comptroller
General, was created in 1925 on the recommendation of the
financial
mission to Chile headed by United States banking official
Edwin
Walter Kemmerer. The Central Bank was charged with
printing money
and controlling its circulation. Its authority over the
country's
monetary policy increased gradually over the years. The
1980
constitution elevates the Central Bank to constitutional
status as
an "autonomous" state organ to be governed by an organic
constitutional law (Law 18,840). The military government
was
concerned that the Central Bank be insulated from
political
pressures to ensure that sound monetary policies were
followed. The
regime was reacting in part to the common practice of
earlier
years, particularly under the UP government, when public
expenditures were financed with direct and indirect loans
from the
Central Bank, fueling budget deficits and inflation.
The Central Bank is governed by the five-member Central
Bank
Council appointed by the president, with the consent of
the Senate,
on a staggered basis. Each member serves ten years and can
be
reappointed. The president of the Central Bank is selected
from
among the council members to serve for five years.
Data as of March 1994
|
|