Description

This document explores the consequences and policy options for emerging market economies facing the expansionary monetary policies followed by advanced economies in recent years. Given the US dollar’s role as the primary transaction and reserve currency in global markets, the main focus is on the path of monetary policy in the US and its spill-over into emerging markets. Special attention is given to the policy framework that Chile has in place and how this framework helps to face situations like the ones we have seen during the last years and those that are likely to occur in the future.