Exchange rate pass-through and inflation targets in Chile
Bibliographic Data
| ID | 11650630 |
|---|---|
| Authors | Patricio Mujica (University of Talca), Rodrigo Saens (0000-0002-8584-5445, University of Talca) |
| Year | 2016 |
| Volume | 2015 |
| Issue | 117 |
| Pages | 137-146 |
| Publication date | 2016-08-08 |
| Open Access | No |
| Type | ARTICLE |
| Venue | CEPAL review (JOURNAL) |
| Journal identifiers | ISSN: 0251-2920 • E-ISSN: 1684-0348 |
| Publisher | United Nations Publications (PUBLISHER • US) |
| DOI | 10.18356/f89148d5-en |
| OpenAlex | W2411975636 |
| Language | EN |
| References cited | 4 |
Using quarterly data on the Chilean economy from 1986 to 2009, this article looks at the effect of gradual implementation of an inflation-targeting regime on exchange rate pass-through to prices. Initially, the introduction of inflation-targeting contributes to substantial reductions in the pass-through coefficient. However, in the second phase of implementation, once the monetary authority extends the policy horizon and introduces greater flexibility into the exchange rate system, the pass-through coefficient rises sharply. The findings of this study show that exchange rate pass-through to prices, in addition to being sensitive to the inflationary environment, is closely tied to the rules of the game that shape the monetary policy framework
Economics · Exchange rate · Exchange-rate flexibility · Exchange-rate pass-through · Exchange-rate regime · Flexibility (engineering · Inflation (cosmology · Inflation targeting · Macroeconomics · Monetary economics · Monetary policy · Physics · Economic Theory and Policy · Global Financial Crisis and Policies · Monetary Policy and Economic Impact
| Highly cited | No |
|---|