Description

This document, published in May 2000 together with the first IPOM, describes the Central Bank’s objectives and how the monetary authority understands the effects of its policies on inflation and price stability. In the first part, the document analyzes the characteristics of the current inflation-targeting scheme, which was fully adopted as of September 1999. The second part describes the transmission channels through which monetary policy effects are passed through to the economy, before materializing in concrete results on inflation. Since 2007, the document entitled “Central Bank of Chile Monetary Policy in an Inflation Targeting Framework” (La Política Monetaria del Banco Central de Chile en el Marco de Metas de Inflación) replaces the contents of this publication.