This paper seeks to advance the discussion of monetary policy strategies in several ways. One involves a comparison of targets for nominal GNP and the price level, with emphasis on specificational robustness and implications for output variability. A second pertains to various “indicator”...

This paper examines the dynamics of the foreign exchange market. The first half addresses a number of key questions regarding the forecasts of future exchange rates made by market participants, by means of updated estimates using survey data. Here we follow most of the theoretical and empirical...

This 2008 Article IV Consultation highlights that the Chilean economy has proved resilient in the face of strong economic and financial headwinds during the past year. Rising world prices for energy and food have been exacerbated by drought and a tight domestic energy situation. The government...