This paper shows the equivalence between various ways of stating the inflation objective. Defining a target range and the percentage of the time it is hoped to fall within its borders is tantamount to defining a target for projected inflation over a given horizon. Both versions are similar to...

Recent literature on sudden stops analyses the sharp and varied capital account reversals experienced by many emerging market economies. This paper claims that more information can be extracted from the behavior of gross capital flows than from their net results. It emphasizes the fact that,...

The paper reviews the exchange rate management experience in Chile, with particular emphasis on the floating exchange rate regime implemented in 1999 and its two forex intervention episodes. It presents evidence on Chile’s favorable conditions to deal with exchange rate shocks: a...

In recent decades, the number of independent central banks has grown steadily. In Chile, autonomy was adopted twenty years ago. This paper discusses the reasons why central bank independence is convenient for the economy, together with the importance of transparency as a complementary feature....

Macroeconomic and financial instability in an inflation-targeting context poses important challenges to emerging economies. The particular case of capital flows into emerging economies is analyzed here as one cause of said macroeconomic and financial instability. Before the recent global crisis,...