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Los Flujos de Capital y la Interacción entre la Política Macroprudencial y la Política Monetaria

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  • José De Gregorio

Abstract

Macroeconomic and financial instability in an inflation-targeting context poses important challenges to emerging economies. The particular case of capital flows into emerging economies is analyzed here as one cause of said macroeconomic and financial instability. Before the recent global crisis, the notion of "separability", i.e., that the objectives of price stability and financial stability are independent of each other, dominated the policy regimes of countries that explicitly sought to achieve financial stability. However, after this crisis it became clear that both are connected locally and internationally. Such links suggest that central banks should take into account the cross effects of monetary policy and financial measures, including among their goals to safeguard financial stability.

Suggested Citation

  • José De Gregorio, 2012. "Los Flujos de Capital y la Interacción entre la Política Macroprudencial y la Política Monetaria," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 15(1), pages 90-95, April.
    • Handle: RePEc:chb:bcchec:v:15:y:2012:i:1:p:90-95
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    References listed on IDEAS

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    1. Nicolas E. Magud & Carmen M. Reinhart & Kenneth S. Rogoff, 2018. "Capital Controls: Myth and Reality--A Portfolio Balance Approach," Annals of Economics and Finance, Society for AEF, vol. 19(1), pages 1-47, May.
    2. Kevin Cowan & José De Gregorio, 2007. "International Borrowing, Capital Controls, and the Exchange Rate: Lessons from Chile," NBER Chapters, in: Capital Controls and Capital Flows in Emerging Economies: Policies, Practices, and Consequences, pages 241-296, National Bureau of Economic Research, Inc.
    3. Nicolas Magud & Carmen Reinhart & Kenneth Rogoff, 2005. "Capital Controls: Myth and Reality A Portfolio Balance Approach to Capital Controls," University of Oregon Economics Department Working Papers 2006-10, University of Oregon Economics Department.
    4. Alan S. Blinder & Ricardo Reis, 2005. "Understanding the Greenspan standard," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, issue Aug, pages 11-96.
    5. José De Gregorio, 2010. "Monetary Policy and Financial Stability: An Emerging Markets Perspective," International Finance, Wiley Blackwell, vol. 13(1), pages 141-156, March.
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