Banco Central de ChileRevista Economía Chilena
Published Issues
Volume 4 Nº 1 April 2001
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| Articles |
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| Seasonal Effects and Volume-yield Relationship in the Central Bank Indexed Promissory Notes Sergio Zúñiga J. This article analyzes information on yields and volume on daily transactions of Central Bank indexed promissory notes (PRBC) from July 1995 to June 1998. Daily yields increase on Mondays, reaching maximum values on Wednesdays, followed by a decline to minimum values on Fridays. The highest weekly yield is observed in the last week of the month, with a general upward trend in yields observed from the start to the end of the month. With regard to PRBC’s volume-yield relation, I found that higher yields correspond to more active trading periods and yields rise strongly with the aggregation of trading data. Central Bank monetary policy, through the monetary policy rate, accounts on average for 6% of this relation. Finally, the volume-yield relation is sensitive to the type of data aggregation, and may show an inverse relation when data is ordered according to days to maturity. |
| Risk, Size and Concentration in the Chilean Banking System Rómulo Chumacero E.; Patricia S. Langoni The possible merger of two of Chile’s largest banks spurred a strong debate. It is claimed that higher levels of bank concentration would significantly increase the aggregate (systemic) risk of the banking system. This assumes implicitly that the bankers’ attitude toward risk taking are correlated with bank size and that current regulations of Chilean banks would not be sufficient to prevent an increase in overall risk. This paper evaluates both at the theoretical and empirical level whether there is any support for this claim. |
| A Decade of Inflation Targeting in Chile: Developments, Lessons, and Challenges Felipe Morandé L. Chile was among the first countries in the world to adopt a monetary framework based on an explicit, publicly announced, annual inflation target, when the term "inflation targeting" had not been even formalized. The country’s inflationary past suggested to combine tough inflation targeting parameters (to enhance the Central Bank’s reputation) and a gradual transition from moderately high inflation to a long-run inflation goal of 3%. After attaining this long-run objective in 1999 and a reputation of inflation-averse, the Central Bank of Chile has moved toward flexibility along the credibility-flexibility trade-off. Finally, having a third objective in the form of an asymmetric threshold for the current-account deficit was reflected in some episodes during which the implicit short-run output stabilization objective was made less important. Notwithstanding the success in reducing inflation during the 90s, without apparently paying real costs, the current inflation target regime faces a few challenges in its quest for keeping a low and stable inflation. |
| Research Notes |
| Irrational Exuberance de Robert J. Shiller Hernán Cortés D. The Conquest of American Inflation de Thomas Sargent Victor Lima H. |
| Publications Review |
| Catastro de publicaciones recientes Resúmenes de artículos seleccionados |