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Capital Account Policies in Chile Macro-financial considerations along the path to liberalization [electronic resource] Carriere-Swallow, Yan.

Author/Creator:
Carriere-Swallow, Yan.
Publication:
Washington, D.C. : International Monetary Fund, 2013.
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 13/107.
IMF Working Papers; Working Paper No. 13/107
Format/Description:
Government document
Book
1 online resource (32 p.)
Local subjects:
Access to international capital.
Access to international capital markets.
Bond issues.
Capital account.
Capital account liberalization.
Capital account policies.
Capital account restrictions.
Capital contributions.
Capital controls.
Capital flows.
Capital gain.
Capital inflows.
Capital markets.
Capital mobility.
Capital movements.
Capital outflows.
Capital transactions.
Central Banks and Their Policies.
Commodity prices.
Comparative or Joint Analysis of Fiscal and Monetary or Stabilization Policy.
Composition of capital inflows.
Cost of capital.
Current Account Adjustments.
Current account deficit.
Domestic capital.
Domestic capital markets.
Domestic equity.
Equity investments.
Equity prices.
Exchange rate policy.
Financial crisis.
Financial Markets and the Macroeconomy.
Fixed income securities.
Floating exchange rate regime.
Foreign capital.
Forward contracts.
Global capital markets.
Global Financial Crisis. -- 2008-2009
Hedging.
Indexation.
Inflation rate.
Inflation targeting.
International capital markets.
International Investment.
Local capital markets.
Long-Term Capital Movements.
Monetary policy.
New york stock exchange.
Private capital inflows.
Private flows.
Real appreciation.
Short-term capital.
Short-term capital inflows.
Short-Term Capital Movements.
Small-open economy.
Spot market.
Stock exchange.
Volatility of capital inflows.
Chile.
Summary:
This paper recounts Chile’s experience with capital account policies since the 1990s. We present how two external shocks were confronted under very different macroeconomic and capital account frameworks. We show that during the 1997-98 Asian-LTCM-Russia crisis, a closed capital account and relatively rigid exchange rate severely constrained the monetary policy response to the shock, aggravating the fall in domestic demand. During the 2008-09 crisis, a full-fledged inflation targeting framework allowed the authorities to implement a significant countercyclical response. We argue that domestic stability considerations lay behind the policy regime switch toward capital account liberalization from 1999 onwards.
Notes:
Description based on print version record.
Contributor:
Carriere-Swallow, Yan.
Garcia-Silva, Pablo.
Other format:
Print Version:
ISBN:
148433146X:
9781484331460
ISSN:
1018-5941
Publisher Number:
10.5089/9781484331460.001
Access Restriction:
Restricted for use by site license.
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