Should we use currency hedging? Naturally the answer depends on who asks the question and the effects of hedging on risk and expected returns. This paper considers the perspective of an international investor based in Chile, but also explores whether similar conclusions can be obtained from the...

This paper describes the structure of real interest rates (the real yield curve) in Chile and shows its evolution through time. It provides a practical tool for the systematic study of the determinants of Chilean yield curves. Empirical estimations are based on transaction and auction data for...