Structural VAR and Structural VEC models were estimated for Chile and Colombia, aiming at identifying fiscal policy shocks in both countries between 1990 and 2005. The impulse responses obtained allow the calculation of a peso-for-peso ($/$) effect on output of a shock to public spending and to...

This paper presents a model for the financial sector’s vulnerability and integrates it into a macroeconomic framework commonly used in monetary policymaking. The main question to answer with the integrated model is whether central banks should explicitly include the financial stability...

The purpose of this paper is to find a set of estimates for the non-accelerating-inflation rate of unemployment (<em>NAIRU</em>) for Chile. Measuring the <em>NAIRU</em> permits to build the unemployment gap, which provides a complementary measure of aggregate demand and of the output gap. It is generally used by...

This paper makes stochastic projections of the Central Bank of Chile’s (CBCh) balance sheet (stocks and flows) starting from the actual current negative net worth. These projections incorporate the effect on the balance sheet of several macroeconomic variables as well as alternative policy...