The Implementation of Monetary Policy in an Emerging Economy: The Case of Chile
Central bank authorities base implementation of monetary policy on an analysis of multiple variables known as monetary policy indicators. In a small open economy such as Chile, these indicators may include inflation misalignments, unemployment, GDP growth, money growth, the current account balance, exchange rate volatility and international reserves. A neural network approach is used to establish the corresponding weights considered by the Board of the Central Bank of Chile during the period 1995-2003. GDP growth and the difference between the actual and the target inflation were found to be among the variables of greatest weight in the monetary policy decision-making process of the Central Bank of Chile during this period.
|Date of creation:||2005|
|Publication status:||Published as "The Implementation of Monetary Policy in an Emerging Economy: The Case of Chile", Revista de Análisis Económico, Vol. 20, Nº 1, pp. 45-62, junio 2005.|
|Contact details of provider:|| Postal: Avda. Vicuña Mackenna 4860, Macul, Santiago|
Phone: (562) 354-4303
Fax: (562) 553-1664
Web page: http://www.economia.uc.cl
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Central Bank of Chile.
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