Dinero e Inflación en el Marco de Metas de Inflación
AbstractThis work describes the role of money in the current inflation-targeting framework in Chile, in particular given the large recent annual increase of M1A. From a conceptual point of view, we analyze the relationship between money growth and inflation, as well as the interpretation of the movements in monetary aggregates. Empirically, we evaluate the informational content of money as an indicator of inflationary pressures in Chile, as well as whether the recent evolution of M1A is consistent with money demand fundamentals. The evidence indicates that the recent trajectory of money does not represent a relevant risk to the achievement of the inflation target.
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Bibliographic InfoPaper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 198.
Date of creation: Jan 2003
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-03-25 (All new papers)
- NEP-CBA-2004-09-12 (Central Banking)
- NEP-LAM-2003-03-25 (Central & South America)
- NEP-MAC-2004-09-12 (Macroeconomics)
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