In this paper we investigate the effects of a negative term-of-trade shock over the real exchange rate and current account in Chile. The work is based on a macro-econometric model that belongs to the family of Keynesian macroeconomic models, which is characterized by nominal rigidities. The...

As monetary policy decisions under inflation targeting are based on the projections of the target variables, a new measure of monetary shock is needed to solve the problems of bias and inconsistency in regression which try to explain the effects of monetary policy on activity and inflation. In...

In this research note I propose the use of the undetermined coefficients method as an alternative approach to solve the Central Bank optimization problem in a neo-keynesian economy. The advantage of using this method is that it provides a theory as to how rational expectations are constructed,...

The aim of this work is to compare and contrast different ways of modeling financial shocks and financial intermediaries in the Dynamic Stochastic General Equilibrium models (DSGE models) and to discuss the empirical evidence on the importance of modeling financial sector and financial shocks in...

In this paper we investigate the effects of a negative term-of-trade shock over the exchange rate and current account in Chile. The work is based on a macro-econometric model that belongs to the family of Keynesian macroeconomic models, which is characterized by nominal rigidities. The results...

In this research note I propose the use of the undetermined coefficients method as an alternative approach to solve the Central Bank optimization problem in a new-keynesian economy. The advantage of using this method is that it provides a theory as to how rational expectations are constructed,...

The aim of this work is to compare and contrast different ways of modeling financial shocks and financial intermediaries in the Dynamic Stochastic General Equilibrium models (DSGE models) and to discuss the empirical evidence on the importance of modeling financial sector and financial shocks in...

The aim of this paper is to explore the effects of interest rate ceilings in a small open economy. In order to account for many individuals and lending, a model with heterogenous agents is considered. The investigation is focused on two issues: First, how effective are interest rate ceilings at...

As monetary policy decisions under inflation targeting are based on the projections of the target variables, a new measure of monetary shock is needed to solve the problems of bias and inconsistency in regression which try to explain the effects of monetary policy on activity and inflation. In...

This note demonstrates how performance measure congruity and noise determine an agency’s total surplus within an linear agency framework with multiple tasks. It provides a decomposition of agency costs, leading back to a congruity index previously proposed in the literature. In addition,...