The stability of the demand for money is of primary importance for the design of monetary policy. If it is found that a stable long term relation exists then the monetary authority should set strict monetary targets for this term if it wants to keep infla

The purpose of this paper is to estimate total factor productivity growth by sector of activity for the Chilean economy in 1986-2001. The main problem that we face is the lack of data on the stock of capital by sector for the whole period. We design a met

This article analyzes the costs and benefits of the dollarization of the Chilean economy. The conclusion is that at the present time the costs are more than the benefits. one of the basic arguments is that the adjustment process of a dollarized economy to

In this paper are examined the consequences of a financial system organized on the grounds of the issue of non-contingent claims by banks and the policy implications that this kind of system implies in order to obtain macroeconomic stability. In particula

Two basic factors have conditioned the development of monetary and exchange policies during the decade of the nineties. Firstly, the end of the external restriction or scarcity of foreign currency so notorious during the previous decade and, secondly, the

Central bank authorities base implementation of monetary policy on an analysis of multiple variables known as monetary policy indicators. In a small open economy such as Chile, these indicators may include inflation misalignments, unemployment, GDP growth, money growth, the current account...