Different studies have analyzed monetary transmission in Chile, and the effects of monetary policy on aggregate macroeconomic variables. However, valuable information, relevant for the design and management of monetary policy, can be obtained in a more specific analysis of the impact of monetary...

The Central Bank of Chile replaced its monetary policy instrument in August 2001, shifting from a monetary policy rate (MPR) linked to an indexed unit of account (UF, defined by the lagged CPI) to a nominal MPR denominated in pesos. This policy change was complemented with a significant change...

This article starts by reviewing the current state of the arts in monetary transmission, emphasizing the empirical evidence for the Chilean case. Then, it focuses on two aspects that have not been given much attention in previous studies, namely the evolution of the monetary policy impact on...

Studies on money demand in both developed and developing countries coincide in reporting systematic over predictions of monetary aggregates, non-robust estimated parameters and out-of-sample forecast variances that are too large to guide monetary policy. Several explanations have been given for...

Inflation targeting is an increasingly popular monetary regime among industrialized and developing central banks. However, there is little cross-country comparative information about commonalties and differences in monetary policy implementation and results across inflation-targeting countries....

While the existence of fixed costs in entering asset markets is the leading rationalization of the "participation puzzle" -the fact that most households do not hold stocks, despite the diversification gains and the significant risk-premium involved-, most motivations of these fixed costs are as...

The behavior of inflation in Chile over the last 30 years has striking similarities to the experience of many industrialized and developing economies. The successful reduction of inflation, in a context of health GDP growth, reflects a combination of factors, ranging from better policies (both...

We study the relationship between firm value and ownership concentration in a market where firms are controlled by large shareholders. We set up an equilibrium model with private benefits of control and bargaining between large shareholders. With simulated data from the model we are able to...

With the exemption of adopting a foreign currency, Chile has experienced virtually all the menu of options of exchange rate policies in the last 40 years. The quest for a reasonable exchange rate policy has been inspired in part by the different goals that, through time, policy makers have...