Pegging in a coordinated way to a regional basket currency is considered by many as optimal for east-Asian countries. By contrast, according to existing empirical studies, these countries have most often relied on noncooperative United States dollar or G3 pegs. We show for the first time that by...

We analyze how Brazilian financial markets, in particular futures interest rates, react to monetary policy both in terms of deeds, i.e. changes in the policy rate, and words, i.e. central bank communication. Using daily data from 2005 to 2014, we find that the futures interest rates react in the...

We analyze how Brazilian financial markets, in particular futures interest rates, react to monetary policy both in terms of deeds, i.e. changes in the policy rate, and words, i.e. central bank communication. Using daily data from 2005 to 2014, we find that the futures interest rates react in the...

During the past few years, monetary policy communication has become a hot topic in as far as it seems to have become a very relevant way for central banks to guide markets, beyond actual monetary policy decisions. This paper investigates this issue empirically for the case of Chile. More...

Pegging in a coordinated way to a regional basket currency is considered by many as optimal for east-Asian countries. By contrast, according to existing empirical studies, these countries have most often relied on noncooperative United States dollar or G3 pegs. We show for the first time that by...