This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Credibilidad, Problema Peso y Comportamiento de las Tasas de Interés: Chile 1979-1982

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Leonardo Hernández
Abstract

This paper analyzed the behavior of domestic interest rates after opening the Capital Account in Chile. Contrary to what has been argued by others, the Uncovered Interest Rate Parity Condition seems to hold when we allow for the possibility of a change in regime. A non-fully credible fixed-exchange rate system, and the induced “peso problem”, seem to be relevant in understanding the level reached by domestic interest rates during 1980-81. An expected depreciation of the currency becomes rational due to the necessary adjustment of the real exchange rate and the lack of credibility of the stabilization program. Credibility appears to be increasing in the growth rate of Industrial Production and in the unit-price of copper, but decreasing in the growth rate of domestic credit.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.economia.puc.cl/index/download.asp?id_publicacion=497
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Article provided by Instituto de Economía. Pontificia Universidad Católica de Chile. in its journal Cuadernos de Economía.

Volume (Year): 28 (1991)
Issue (Month): 85 ()
Pages: 385-410
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ioe:cuadec:v:28:y:1991:i:85:p:385-410

Contact details of provider:
Postal: Avda. Vicu� Mackenna 4860, Macul, Santiago
Phone: (562) 686-4303
Fax: (562) 553-1664
Email:
Web page: http://www.economia.puc.cl/
More information through EDIRC

Order Information:
Email:

For technical questions regarding this item, or to correct its listing, contact: (Verónica Gil).

Related research
Keywords:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Maurice Obstfeld, 1985. "The Capital Inflows Problem Revisited: A Stylized Model of Southern Cone Disinflation," NBER Working Papers 1456, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Corbo, Vittorio & de Melo, Jaime & Tybout, James, 1986. "What Went Wrong with the Recent Reforms in the Southern Cone," Economic Development and Cultural Change, University of Chicago Press, vol. 34(3), pages 607-40, April.
  3. Cohen, Daniel & Michel, Philippe, 1988. "How Should Control Theory Be Used to Calculate a Time-Consistent Government Policy?," Review of Economic Studies, Blackwell Publishing, vol. 55(2), pages 263-74, April. [Downloadable!] (restricted)
  4. Corbo, Vittorio & De Melo, Jaime, 1985. "Overview and summary," World Development, Elsevier, vol. 13(8), pages 863-866, August. [Downloadable!] (restricted)
  5. Andersen, Torben M. & Risager, Ole, 1988. "Stabilization policies, credibility, and interest rate determination in a small open economy," European Economic Review, Elsevier, vol. 32(2-3), pages 669-679, March. [Downloadable!] (restricted)
  6. Pagan, Adrian, 1986. "Two Stage and Related Estimators and Their Applications," Review of Economic Studies, Blackwell Publishing, vol. 53(4), pages 517-38, August. [Downloadable!] (restricted)
    Other versions:
  7. Baxter, Marianne, 1985. "The role of expectations in stabilization policy," Journal of Monetary Economics, Elsevier, vol. 15(3), pages 343-362, May. [Downloadable!] (restricted)
  8. Pagan, Adrian, 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(1), pages 221-47, February. [Downloadable!] (restricted)
  9. Backus, David & Driffill, John, 1985. "Rational Expectations and Policy Credibility Following a Change in Regime," Review of Economic Studies, Blackwell Publishing, vol. 52(2), pages 211-21, April. [Downloadable!] (restricted)
  10. Backus, David & Driffill, John, 1985. "Inflation and Reputation," American Economic Review, American Economic Association, vol. 75(3), pages 530-38, June. [Downloadable!] (restricted)
    Other versions:
Full references

Statistics
Access and download statistics

Did you know? IDEAS also indexes book chapters.

This page was last updated on 2009-12-9.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.