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Measuring Monetary Policy and Pass-Through in Chile

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Author Info
Héctor Bravo L.
Carlos García T.
Abstract

First, this paper reviews the most important literature based on money VAR, which explains monetarytransmission mechanisms and pass-through from depreciation to inflation in Chile and other countries. Second, it estimates three structural VAR models with short-run restrictions and one VEC with long-run restrictions. The results indicate that monetary-transmission has become less powerful in the last years than in the period 1986-1997 and that the low pass-through depends on economic activity, inflation and the inflation target.

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File URL: http://www.bcentral.cl/estudios/revista-economia/2002/diciembre2002/5_28.pdf
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Publisher Info
Article provided by Central Bank of Chile in its journal Economía Chilena.

Volume (Year): 5 (2002)
Issue (Month): 3 (December)
Pages: 5-28
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:chb:bcchec:v:5:y:2002:i:3:p:5-28

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