This paper identifies supply and demand functions in the Chilean credit market. The analysis divides credit into three categories by debtor type, namely consumption, commercial and housing loans. We successfully exploit novel bank-level data on non-price covenants to address the simultaneous...

The events surrounding the financial crisis and recession of 2008-2009 required significant policy responses by central banks. For formal inflation targeters (IT) a natural question arises about whether IT frameworks were flexible enough to address this unprecedented policy environment. In this...

This work describes the role of money in the current inflation-targeting framework in Chile, in particular given the large recent annual increase in M1A. From a conceptual standpoint, it analyzes the relationship between money growth and inflation, as well as the interpretation of movements in...

We rank Chile in terms of labor market flexibility among a group that includes both OECD and emerging economies. We use a performance-based indicator of labor-market flexibility based on the half life of unemployment responses to macroeconomic shocks. This indicator captures the cyclical...

Trend GDP and the output gap are key inputs for policy evaluation and forecasting in standard models of monetary policy. However, measuring these variables is no easy task. This paper proposes two different approaches. First, a data-based approach, that starts with the primal and dual estimates...

This work describes the role of money in the current inflation-targeting framework in Chile, in particular given the large recent annual increase of M1A. From a conceptual point of view, we analyze the relationship between money growth and inflation, as well as the interpretation of the...