This paper examines non-Ricardian effects of government spending shocks in the Chilean economy. We first provide evidence on those effects based on vector autoregressions. We then show that such evidence can be accounted for by a model that features: (i) a sizeable share of non-Ricardian...

This paper uses the dynamic factor analysis methodology developed by Stock and Watson (1998) in order to forecast inflation and the Imacec, an index of economic activity of common use for the Chilean economy. Our results indicate that using factors in the process of forecasting these...

Open economies, particularly emerging markets and commodity-intensive economies, deal with large external shocks. Alternative policy reactions and policy setups may dampen or amplify the consequences of these shocks, affecting the magnitude of the effects. This paper revisits the recent...

In this paper we use the dynamic factor analysis methodology developed by Stock and Watson (1998) in order to forecast inflation and an index of economic activity for the Chilean economy. Our results indicate that using factors in the process of forecasting of these macroeconomic variables...

A selective revision to the theoretical and empirical literature on macroeconomic performance and central bank autonomy, yields new evidence of the relationship between the latter and the passthrough coefficient from the exchange rate to inflation. An analysis follows, from diverse viewpoints,...

This paper first compares house price cycles in advanced and emerging economies using a new quarterly house price dataset covering the period 1990- 2012. It is found that that house prices in emerging economies grow faster, are more volatile, less persistent and less synchronized across...