Banco Central de ChileRevista Economía Chilena
Published Issues
Volume 8 Nº 2 August 2005
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| Articles |
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| Policy Responses to external Shocks in Australia, Brazil and Chile Luis Felipe Céspedes C. / Ilan Goldfajn / Phil Lowe / Rodrigo Valdés P. Open economies, particularly emerging markets and commodity-intensive economies, deal with large external shocks. Alternative policy reactions and policy setups may dampen or amplify the consequences of these shocks, affecting the magnitude of the effects. This paper revisits the recent experience of policy frameworks and reactions in Australia, Brazil and Chile. In particular, we describe the recent experience of these countries by providing an account of the macroeconomic policy framework and the policy reactions to the major shocks of the past eight years, and draw some policy lessons. |
| Contingent Reserves Management: an Applied Framework Ricardo J. Caballero G. / Stavros Panageas One of the most serious problems that a central bank in an emerging market economy can face, is the sudden reversal of capital inflows. Hoarding international reserves can be used to smooth the impact of such reversals, but these reserves are seldom sufficient and always expensive to hold. In this paper we argue that adding richer hedging instruments to the portfolios held by central banks can significantly improve the efficiency of the anti-sudden-stop mechanism. We illustrate this point with a simple quantitative hedging model, where optimally used options and futures on the S&P100’s implied volatility index (VIX), increase the expected reserves available during sudden stops by as much as 40 percent. |
| Currency Mismatches in Non-Financial Firms in Chile Kevin Cowan L. / Erwin Hansen S. / Luis Óscar Herrera B. Using a new data base that includes the currency composition of assets and liabilities of non-financial firms, this paper examines the effects and determinants of currency mismatches in Chile. In line with previous studies, we find that after a depreciation in real terms, firms with the largest debt in dollars perform no worse than their counterparts indebted in pesos. Nonetheless, once we control properly by differences across firms in the currency composition of their assets, income and use of derivatives, significant balance sheet effects arise. |
| Research Notes |
| Oferta y Demanda de Papeles y Tasas de Interés Reajustables de Largo Plazo Álvaro García M |
| Relación entre Tasas de Interés Internas y Externas Hermann González B. / Esteban Jadresic M. / Felipe Jaque S |
| Books review |
| Labor Markets and Institutionsn editado por Jorge Enrique Restrepo y Andrea Tokman R. René Cortázar S General Equilibrium Models for the Chilean Economy editado por Rómulo A. Chumacero y Klaus Schmidt-Hebbel Francisco Rosende R. Wage Dispersion: Why are Similar Workers Paid Differently? de Dale T. Mortensen Andrea Tokman R. |
| Publications Review |
| Catastro de publicaciones recientes y resúmenes de artículos seleccionados |