The Implementation of Monetary Policy in an Emerging Economy: The Case of Chile
Abstract
Central bank authorities base implementation of monetary policy on an analysis of multiple variables known as monetary policy indicators. In a small open economy such as Chile, these indicators may include in-flation misalignments, unemployment, GDP growth, money growth, the current account balance, exchange rate volatility and international re-serves. A neural network approach is used to establish the correspond-ing weights considered by the Board of the Central Bank of Chile dur-ing the period 1995-2003. GDP growth and the difference between the actual and the target inflation were found to be among the variables of greatest weight in the monetary policy decision-making process of the Central Bank of Chile during this period.
How to Cite
Johnson, C. A., & Vergara, R. (1). The Implementation of Monetary Policy in an Emerging Economy: The Case of Chile. Economic Analysis Review, 20(1), 45-62. Retrieved from https://www.rae-ear.org/index.php/rae/article/view/45
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