IDEAS home Printed from https://ideas.repec.org/p/chb/bcchwp/497.html
   My bibliography  Save this paper

Macroeconomics, Monetary Policy and the Central Bank´s Net Worth

Author

Listed:
  • Jorge E. Restrepo
  • Luis Salomó
  • Rodrigo Valdés

Abstract

This paper makes stochastic projections of the Central Bank of Chile’s (CBCh) balance sheet (stocks and flows) starting from the actual current negative net worth. These projections incorporate the effect on the balance sheet of several macroeconomic variables as well as alternative policy decisions, taking into account the uncertainty and risks inherent in the economy. The article describes and assesses the main causes of the present deficit. In the baseline scenario, the deterministic forecast shows that the Central Bank's net worth will increase slowly to reach positive values after 25 years. However, in the stochastic simulations the Bank's net worth will still be negative 25 years from now, with a 69 percent probability.

Suggested Citation

  • Jorge E. Restrepo & Luis Salomó & Rodrigo Valdés, 2008. "Macroeconomics, Monetary Policy and the Central Bank´s Net Worth," Working Papers Central Bank of Chile 497, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:497
    as

    Download full text from publisher

    File URL: https://www.bcentral.cl/documents/33528/133326/DTBC_497.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:chb:bcchwp:497. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alvaro Castillo (email available below). General contact details of provider: https://edirc.repec.org/data/bccgvcl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.