The present study analyzes how copper price shocks affect macroeconomic variables in Chile, which is the largest producer in the world of this commodity. It is taken into account that shocks with different sources may have different impacts and a separation is made between supply, demand, and...

With the objective of evaluating the impact of oil price shocks on the Chilean economy, this paper applies the sign restriction methodology to impulse-response functions in order to distinguish the effects of different types of shocks, namely supply, demand, or oil-specific demand. It also...

This study analyses what affects the expectations of the private forecasters and, particularly, if they are influenced by the central bank's forecasts. The analysis uses data from the Economic Expectation Survey (EES), conducted by the Central Bank of Chile, and from the Monetary Policy Reports...

We assess the role of real and nominal shocks on the real exchange rate (RER) dynamics for a set of small open economies. In doing so, we estimate a SVAR model for five inflation targeting countries: Australia, Canada, Chile, Israel and Norway. In sharp contrast with the existing empirical...

In this paper we analyze the contribution of international measures of inflation to predict local ones. To that end, we consider the set of current thirty one OECD economies for which inflation data is available at a monthly frequency. By considering this set of countries, a span of time...

We examine consumption and commercial lending rates evolution, identifying the main determinants of their movements. Our objective is to distinguish effects related to monetary policy rate from those due to higher risk; this is done through counterfactual simulations around relevant variables....

Inflation targeting central banks usually base their objectives on headline inflation, which is often affected by price movements of specific components whose behavior makes it difficult to extract clear signals about the inflationary outlook relevant for the monetary policy horizon. For this...

We combine the ideas of the trimmed mean and the Edgeworth index to construct an alternative measure of core inflation named “Trim of most volatile components (TMVC)”. At each point of time this measure trims away the components of the price index, which have been most volatile in the past....

When a specific price is affected by a shock, this may spread to other prices and thus affect the overall inflation rate by more than the initial effect. This phenomenon is known as propagation of inflationary shocks and is the subject investigated in the present paper. It is argued that...

The present paper analyzes propagation of shocks to food and energy prices in 46 countries with data from the period 1999-2010. The empirical evidence suggests that in only one of the countries considered, a shock to the price of either energy or food shows no propagation to the prices of the...