IDEAS home Printed from
   My bibliography  Save this article

Bolivianization and effectiveness of the Monetary Policy


  • Osmar Bolivar

    (Ministerio de Economía y Finanzas Públicas)


This research paper examines whether the expansion of the degree of bolivianization of the financial system has implications in terms of a greater effectiveness of the monetary policy. In this regard, an estimation is made of the function associated to the liquidity of the financial system, as the operational objective of the Central Bank of Bolivia’s monetary policy. The explanatory variables considered are the interactions between the instruments of the monetary policy, which are the Open Market Operations and the monetary regulation rate, with bolivianization of the financial system. The incorporation of these interaction variables approximates the variable effects of each instrument on liquidity control of the financial system for each specific value of the bolivianization in the period covered by the analysis. In addition, a Structural VAR is estimated which interrelates bolivianization and the variables making up the instruments, transmission mechanisms and the target variables of the monetary policy, with the aim of analyzing the implications of the effects of the bolivianization on the monetary policy transmission.

Suggested Citation

  • Osmar Bolivar, 2016. "Bolivianization and effectiveness of the Monetary Policy," Cuadernos de Investigación Económica Boliviana, Ministerio de Economía y Finanzas Públicas de Bolivia, vol. 1(2), pages 1-40, July.
  • Handle: RePEc:efp:journl:v:1:y:2015:i:2:p:1-40

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    More about this item


    Bolivianization; Monetary Policy;

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies


    Access and download statistics


    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:efp:journl:v:1:y:2015:i:2:p:1-40. 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: Unidad de Análisis y Estudios Fiscales (email available below). General contact details of provider: .

    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.