China's import penetration in Chilean markets is higher in unskilled-labor intensive sectors as predicted by traditional endowment-based theories of comparative advantage. However, there is also evidence of within-industry specialization. In particular, high-income countries receive higher...

This note discusses the elements of prudential financial policies and supervisory practices in Chile that can be considered macroprudential. While showing similar macroeconomic volatility as that of the median of emerging market economies (EMEs), financial volatility, at least in two of the...

We document significant US monetary policy (MP) spillovers to international bond markets. Our methodology identifies US MP shocks as the change in short-term treasury yields within a narrow window around FOMC meetings, and traces their effects on international bond yields using panel...

Chile is no exception to the high co-movement of sovereign long-term rates observed between EMEs and the United States. In particular, we show that the high co-movement is mainly driven by synchronisation of the term premium. The aggressive monetary policy in developed economies since the...

We document significant US monetary policy spillovers to domestic bond markets in a sample of 24 countries, including 12 developed and 12 emerging market economies. We rely on an event study methodology where US monetary policy changes are identified as the response of short-term US treasury...

International financial integration and a high co-movement in risk premia have caused long-term interest rates in developing countries to become highly correlated with long-term interest rates in the main financial centres. Arguably, this reveals a limit to monetary policy independence. We...