The Implementation of Monetary Policy in an Emerging Economy: The Case of Chile

  • Christian A. Johnson Universidad Adolfo Ibáñez
  • Rodrigo Vergara Universidad Católica de 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
Issue
Vol. 20 No. 1 (2005)
Section
Articles

Upon submission of an article, authors are asked to indicate their agreement to abide by an open-access license. The license permits any user to download, print out, extract, archive, and distribute the article, so long as appropriate credit is given to the authors of the work. The license ensures that your article will be as widely available as possible and that your article can be included in any scientific archive. Please read about the Creative Commons Attribution License before submitting your paper. 
Except where otherwise noted, content on this site is licensed under a Creative Commons Attribution 3.0 License