Monetary Policy Independence in Chile

Sebastian Claro, Luis Opazo

Resultado de la investigación: Capítulo del libro/informe/acta de congresoCapítulo

Resumen

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: <a href="http://ssrn.com/abstract=2498104" target="_blank">The Transmission of Unconventional Monetary Policy to the Emerging Markets</a>
Idioma originalInglés estadounidense
Título de la publicación alojadaThe transmission of unconventional monetary policy to the emerging markets
Lugar de publicaciónBasel, Switzerland
EditorialBank for International Settlements
Páginas113-125
Volumen78
ISBN (versión digital)92-9197-567-3
ISBN (versión impresa)92-9131-566-6
EstadoPublicada - 2014

Serie de la publicación

NombreBIS Paper No. 78g

Huella

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