Monetary Policy and Long-term Interest Rates in Chile PDF Download
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Author: Mauricio Larraín
Publisher:
ISBN:
Category : Interest rates
Languages : en
Pages : 34
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Book Description
Author: Mauricio Larraín
Publisher:
ISBN:
Category : Interest rates
Languages : en
Pages : 34
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Book Description
Author: Mr.Andrea Pescatori
Publisher: International Monetary Fund
ISBN: 1484363108
Category : Business & Economics
Languages : en
Pages : 33
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Book Description
This paper assesses the quality of the CBC’s communication policy by looking at the predictability and effectiveness of monetary policy communications by the Central Bank of Chile (CBC). To do so, we construct indeces of monetary policy surprises for the three major communication channels of the CBC: the release of policy meetings’ statements, minutes, and monetary policy reports (IPoM). We assess monetary policy predictability and efficacy by looking at the size and time-evolution of monetary policy surprises associated with meeting statements and the impact of the above communication channels on asset markets. We find that, in general, the CBC’s has been effective in its forward guidance through its statements and IPoM. Policy actions are quite predictable, especially post the global financia crisis. The response of equity prices and the exchange rate to monetary policy surprises have the right sign but are not robust. We also find an asymmetric response of equity prices to minutes suggesting that market participants extract information on the status of the economy especially when minutes have a loosening effect. Finally, to look at the macroeconomic impact we find that a 100 bps monetary policy tightening shock implies a decline in economic activity (IMACEC) of about 2 pp. after one year, while the response of inflation is more muted.
Author: Marco A Espinosa-Vega
Publisher: International Monetary Fund
ISBN: 1451853629
Category : Business & Economics
Languages : en
Pages : 37
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Book Description
This paper investigates empirically the pass-through of money market interest rates to retail banking interest rates in Chile, the United States, Canada, Australia, New Zealand, and five European countries. Overall, Chile's pass-through does not appear atypical. Based on a standard error-correction model, we find that, as in most countries considered, Chile's measured pass-through is incomplete. But Chile's pass-through is also faster than in many other countries considered and is comparable to that in the United States. While we find no significant evidence of asymmetry in Chile's pass-through across states of the interest rate or monetary policy cycle, we do find some evidence of parameter instability, around the time of the Asian and Russian crises. However, we do not find evidence that the switch to a more flexible exchange rate regime in 1999 and the "nominalization" of Chile's interest rate targets in 2001 have affected significantly the pass-through process.
Author: Sebastián Claro
Publisher:
ISBN:
Category :
Languages : en
Pages : 14
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Book Description
International financial integration and a high co-movement in risk premia have caused long-term interest rates in developing countries to become highly correlated with long-term interest rates in the main financial centres. Arguably, this reveals a limit to monetary policy independence. We analyse the case of Chile since the early 2000s, showing that exchange rate flexibility and inflation credibility have enhanced the ability to have a monetary policy based upon domestic inflationary objectives. The apparent tension between a central bank's capacity to determine short-term monetary conditions while exerting a less strong influence on the long end of the yield curve suggests that a complementary role for other macroprudential tools is required if price and financial stability objectives are to be achieved.Full publication: "http://ssrn.com/abstract=2498104" target="_blank" The Transmission of Unconventional Monetary Policy to the Emerging Markets.
Author: Mr.Jeronimo Zettelmeyer
Publisher: International Monetary Fund
ISBN: 1451849265
Category : Business & Economics
Languages : en
Pages : 24
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Book Description
This paper examines the reaction of the bilateral Ch$/US$ exchange rate to monetary policy actions in Chile and the United States. The approach is to regress the change in the exchange rate following a policy announcement on changes in market interest rates in response to the same announcement. U.S. monetary policy actions that raise the three-month treasury bill rate by 1 percentage point lead to depreciations of the Chilean peso by about 1.5 to 2 percent. The exchange rate also reacts to monetary policy actions in Chile, but the response appears to be smaller, and cannot be estimated with much precision on the available sample.
Author: García Silva García S.
Publisher:
ISBN:
Category :
Languages : en
Pages : 36
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Book Description
Author: Banco Central de Chile
Publisher:
ISBN:
Category : Banks and banking, Central
Languages : en
Pages : 30
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Book Description
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451807473
Category : Business & Economics
Languages : en
Pages : 145
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Book Description
In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country.
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1455208388
Category : Business & Economics
Languages : en
Pages : 58
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Book Description
The cornerstone of Chile’s impressive fiscal performance and strong fiscal system has been its structural balance rule. It has helped to insulate public spending from copper price cycles and improve the government’s net financial position. Chile should adopt a full-fledged medium-term fiscal framework to improve fiscal planning and provide a framework for addressing temporary deviations from the fiscal rule. Publishing additional fiscal indicators in the budget, such as the non-copper structural balance, could provide more comprehensive information on the impact of fiscal policy on the domestic demand.
Author: Jeromin Zettelmeyer
Publisher:
ISBN:
Category :
Languages : en
Pages : 23
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Book Description
This paper examines the reaction of the bilateral Ch$/US$ exchange rate to monetary policy actions in Chile and the United States. The approach is to regress the change in the exchange rate following a policy announcement on changes in market interest rates in response to the same announcement. U.S. monetary policy actions that raise the three-month treasury bill rate by 1 percentage point lead to depreciations of the Chilean peso by about 1.5 to 2 percent. The exchange rate also reacts to monetary policy actions in Chile, but the response appears to be smaller, and cannot be estimated with much precision on the available sample.
