Granger (1966) describes how the spectral shape of an economic variable concentrates spectral mass at low frequencies, declining smoothly as frequency increases. Despite a discussion about how to assess robustness of his results, the empirical exercise focused on the evidence obtained from a...

This paper addresses three policy questions related to the episodes of real exchange rate (RER) appreciation in the aftermath of the 2008-09 global financial crisis. First, we determine the extent to which recent movements in RER, in several countries, are driven by changes in RER determinants...

We set up and estimate a DSGE model of a small open economy to assess the role of domestic financial frictions in propagating foreign shocks. In particular, the model features two types of financial frictions: one in the relationship between depositors and banks (following Gertler and Karadi,...

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...

Central banks’ communication policies have changed dramatically over the last decades. They have moved from being very secretive to much more transparency with a special emphasis on communications. This is not only related to a cultural change in the society at large that demands more...

The new 2008 benchmark compilation for measuring national accounts establishes the statistical framework to compile the main macroeconomic variables of the Chilean economy. This new benchmark introduces several innovations in both methods and sources of information with respect to the previous...

This paper presents the methodological changes that the Central Bank of Chile introduces into the balance of payments statistics and international investment position from March 2012, accompanied by spliced series starting in 2003. These changes are associated with the incorporation of new...

This paper presents the methodology for measuring the sectoral interlinkages or from-whom-towhom matrices for deposits and loans covering the period 2008-2012. In addition, the results are presented as networks which allow relationships to be analyzed between different sectors. These matrices...