Foreword

The new series of books on Central Banking, Analysis, and Economic Policies offers readers in Chile and abroad access to a significant part of the economic research carried out or supported by the Central Bank of Chile. The purpose of this series is to contribute to the study of central banking and economic analysis in general, focusing on issues and policies relevant to the conduct of economic policy in emerging market economies. In this way the Central Bank seeks to disseminate knowledge of its policies and the information on which they are based, and to encourage dialogue among academics, economic analysts, and policy makers in Chile and in the world.

By bringing together work by Chilean and foreign academics, researchers with central banks, international institutions and private research centers, this series exemplifies how economic research and policy decision-making generate opportunities for a highly beneficial exchange. Thus, research can contribute to understanding the reasons underlying the successes, failures, advantages, and weaknesses associated with different economic policies. Relevant research also provides powerful support to decision-makers in comparing and evaluating policy options. In particular, the Central Bank of Chile believes that only through solid economic analysis it can achieve the objective that society has entrusted it with, that is, the efficient conduct of monetary policy to ensure price stability and an orderly payments system, both in the domestic currency and in foreign exchange.

Effective policy decision-making increasingly requires application of analytical tools, relevant models, and empirical analysis in different areas. Thus, monetary policy benefits from rigorous, first-rate analysis in fields such as transmission mechanisms and the rules of monetary policy, the economics of the functioning and the efficient regulation of capital markets, international finance, the macroeconomics of saving, investment, economic growth, just to name a few specific areas.

The books included in this series are selected not only for the relevance of the subjects analyzed, but also for the quality of the research they contain. To ensure their quality, the manuscripts of books under consideration for publication in this series are subject to a review process involving active participation of external referees. Final approval for publication in this series lies with the editorial committee of the series, comprised by distinguished economists, and the Board of the Central Bank of Chile. As the Bank intends to reach an international audience, books will be published in Spanish or English, depending on the topic and the general importance of the subject at issue. The books in the series will be published both in print and electronic formats to facilitate their prompt and extensive distribution.

In summary, with the initiation of this new Series on Central Banking, Analysis, and Economic Policies, the Central Bank of Chile seeks to contribute to greater transparency of its policies and research, and to enrich economic debate in Chile and abroad.

Carlos Massad

Governor

Central Bank of Chile