Using daily data on intervention activities by the Central Bank of Chile between 1998 and 2003, this paper studies the impact of these actions on the peso/dollar exchange rate. First, results are obtained from an event study, finding no evidence of a significant effect of interventions on the...

This paper studies the effects of exchange rate interventions using daily and intraday data for Chile, from 1998 to 2003. Its main contribution is the recognition of the role played by transparency and public announcements in the success of the intervention policy, through the existence of an...

Many countries have switched from a pay-as-you-go pension systems to a fully funded scheme with individual accounts. These fully funded systems are commonly implemented as defined contribution schemes, so that the final benefits paid are uncertain and closely related the contribution profile....

Human Capital, or more precisely education, plays an important role in economic growth. Chile's structural reforms in this front have contributed with more than one percentage point of higher growth during the nineties. If we continue in the same human capital trend growth, or even better, if we...

This paper reviews the issues and papers presented at the VII Annual Conference of the Central Bank of Chile on Labor Market and Institutions, that will soon be compiled in a book by the same name. It discusses the origins of labor regulations, which are many times not associated to specific...

Education policies targeted at the worst performing schools are controversial. Its positive discrimination nature has been debated, while the lack of serious empirical evaluation has frozen the discussion at a highly theoretical level. The biggest problem has been to identify unbiased effects,...

Different studies have analyzed monetary transmission in Chile, and the effects of monetary policy on aggregate macroeconomic variables. However, valuable information, relevant for the design and management of monetary policy, can be obtained in a more specific analysis of the impact of monetary...

The Central Bank of Chile replaced its monetary policy instrument in August 2001, shifting from a monetary policy rate (MPR) linked to an indexed unit of account (UF, defined by the lagged CPI) to a nominal MPR denominated in pesos. This policy change was complemented with a significant change...

This article starts by reviewing the current state of the arts in monetary transmission, emphasizing the empirical evidence for the Chilean case. Then, it focuses on two aspects that have not been given much attention in previous studies, namely the evolution of the monetary policy impact on...

As many countries worldwide, Chile has experienced virtually all the menu of options of exchange rate policies in the last 40 years – with the sole exception of giving up its national currency. The quest for a reasonable exchange rate policy has been inspired in part by the different goals...