Download or read book The Impact of Monetary Policyon the Bilateral Exchange Rate written by Mr.Jeronimo Zettelmeyer and published by International Monetary Fund. This book was released on 2003-04-01 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Exchange Rate Policy in Chile written by Felipe Morandé and published by . This book was released on 2002 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Capital Account Policies in Chile Macro financial considerations along the path to liberalization written by Mr.Yan Carriere-Swallow and published by International Monetary Fund. This book was released on 2013-05-14 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper recounts Chile’s experience with capital account policies since the 1990s. We present how two external shocks were confronted under very different macroeconomic and capital account frameworks. We show that during the 1997-98 Asian-LTCM-Russia crisis, a closed capital account and relatively rigid exchange rate severely constrained the monetary policy response to the shock, aggravating the fall in domestic demand. During the 2008-09 crisis, a full-fledged inflation targeting framework allowed the authorities to implement a significant countercyclical response. We argue that domestic stability considerations lay behind the policy regime switch toward capital account liberalization from 1999 onwards.
Download or read book Central Bank Communication and Monetary Policy Surprises in Chile written by Mr.Andrea Pescatori and published by International Monetary Fund. This book was released on 2018-07-06 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Comfort in Floating Taking Stock of Twenty Years of Freely Floating Exchange Rate in Chile written by Elías Albagli and published by International Monetary Fund. This book was released on 2020-06-19 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: Chile offers an example of a country that has overcome the fear of floating by reducing balance sheet mismatches, enhancing financial market development, as well as improving monetary, fiscal, and political institutions, and strengthening policy credibility. Under the floating regime, Chile’s economic adjustment to external shocks appears significantly improved, and its exchange rate pass-through has substantially declined. Our results reinforce the case that moving to a clear and credible floating regime can be associated with a reduction in the fear of floating via economic transformation (like smaller balance sheet mismatches, a larger hedging market, and a lower exchange rate pass-through).
Download or read book Miedo a Flotar Y la Pol tica Cambiaria en Chile Versi n Espa ol written by Jose De Gregorio and published by . This book was released on 2004 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Impact of Monetary Policy on the Bilateral Exchange Rate written by Jeromin Zettelmeyer and published by . This book was released on 2006 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Exchange Rate Policy and Exchange Rate Interventions written by Sebastián Claro and published by . This book was released on 2014 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we review Chile's experience with exchange rate flexibility since the early 2000s. Since the abandonment of the target zone for the exchange rate at the end of the 1990s, the Central Bank of Chile has been strongly committed to exchange rate flexibility, allowing the exchange rate to fluctuate in response to different shocks. As a result, the floating regime in Chile has worked very well in different dimensions. In particular, we discuss how the credibility of the floating regime has significantly lowered the currency mismatch of assets and liabilities in the corporate sector and has enhanced the role played by exchange rate movements in adjusting the economy to financial and terms-of-trade shocks. In spite of its commitment to the floating regime, the Central Bank of Chile has intervened the exchange market on a few exceptional occasions. We review two of these interventions, which occurred in 2008 and 2011, discussing their mechanisms, effectiveness and potential drawbacks.Full publication: "http://ssrn.com/abstract=2420030" Market Volatility and Foreign Exchange Intervention in EMEs: What Has Changed?
Download or read book Exchange Rates and Monetary Policy in Open Economies written by Rodrigo Caputo and published by . This book was released on 2004 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Exchange Rate Policy in Chile Since 1960 written by Jose De Gregorio and published by . This book was released on 1999 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary Policy Exchange Rate and Inflation Inertia in Chile written by Rodrigo Caputo and published by . This book was released on 2005 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Flexible Exchange Rate Regime and Forex Interventions written by Jose De Gregorio and published by . This book was released on 2004 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Capital Flows and Long Term Equilibrium Real Exchange Rates in Chile written by Ibrahim Elbadawi and published by World Bank Publications. This book was released on 1994 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Verifying Exchange Rate Regimes written by and published by World Bank Publications. This book was released on 2000 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: One reason intermediate exchange rate regimes have fallen out of favor is that they are not transparent or easy to verify. A simple peg or a simple float may be easier for market participants to verify than a more complicated intermediate regime.
Download or read book Outside the Band written by Mrs.Esther Perez Ruiz and published by International Monetary Fund. This book was released on 2016-07-06 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines inflation dynamics in Chile during the last peso depreciation episode 2013-15. The evidence is for substantial pass-through effects to inflation, given the large and persistent depreciation movement. Widespread indexation practices in non-traded goods markets are found to amplify the inflation response to the depreciation, while the role of wage indexation is less relevant to the inflation dynamics. Overall, inflation would have remained within the central bank’s target band absent the peso depreciation. The analysis also shows that tightening monetary policy in response to a depreciation shock can be costly in terms of output: the response of activity to rates is found to be strong, while the transmission from activity to inflation is found to be weak. Simulations under uncertainty about the extent of the pass-through also suggest that monetary policy can play a countercyclical role in the face of depreciation shocks at a moderate inflationary cost, as long as inflation expectations remain anchored.
Download or read book Monetary and Banking Policy of Chile written by Guillermo Subercaseaux and published by Oxford, Clarendon Press. This book was released on 1922 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Adjustment and Equity in Chile written by Patricio Meller and published by Paris, France : Development Centre of the Organisation for Economic Co-operation and Development ; [Washington, D.C. : OECD Publications and Information Centre. This book was released on 1992 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt:
