In this paper we explore the channels through which the terms of trade affect labor market variables in an emerging economy such as Chile. In doing so, we analyze the cyclical properties of labor market variables and use a structural vector autoregressive model to analyze the empirical responses...

We assess the role of real and nominal shocks on the real exchange rate (RER) dynamics for a set of small open economies. In doing so, we estimate a SVAR model for five inflation targeting countries: Australia, Canada, Chile, Israel and Norway. In sharp contrast with the existing empirical...

In this paper we provide evidence on the relation between the currency carry trade and currency crashes with the Chilean peso. Using rich information from the local Chilean forward market, we show that speculation over recently high interest rate differentials between the peso and developed...

In this paper we analyze the contribution of international measures of inflation to predict local ones. To that end, we consider the set of current thirty one OECD economies for which inflation data is available at a monthly frequency. By considering this set of countries, a span of time...

The main objective of this working paper is presents the Social Accounting Matrix (SAM) 2008, based on official Chilean national accounts published in 2011 and 2012. Besides, this work allows three complementary objectives, did not found in most of the SAMs publications: a) including non...

Inflation expectations are usually obtained from the swaps market or from the so called inflation insurance. Often times both measures give similar results, however, given the difference in the settlement structure these results may differ. This document presents the settlement structure of...

The establishment of reference compilation 2008, in December 2011, resulted in the upgrade of the national accounts series since 2008. It also involved the development of a comprehensive backward data-chain process for the period 2003-2008, to give the public timely longest historical series,...

This paper presents the main concepts relating to lending statistics published by the Central Bank of Chile (CBC), intended to facilitate its understanding and analysis by the general public. This, within a context of growing market’s need to understand and rely on a timely, comprehensive...

Wide interest rate differentials between economies may generate attractive investment opportunities. However, these operations could cause major disruptions in foreign exchange markets, such as excessive volatility in the exchange rate due to overexposure to speculative flows. The investment...