Description

Two decades into the implementation of inflation targeting in Chile, this document revisits the relationship between expectations about and communication of future monetary policy. In the analytical framework that underlies the inflation targeting scheme, what matters most is not the communication of specific monetary policy actions, but rather the transparency with which it operates in the face of changing macroeconomic situations. In this context, the document revisits the history of the way the Central Bank has communicated its monetary policy orientation since the year 2000, describing the current scenario and the challenges ahead.