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Monetary Transmission in Dollarized and Non-Dollarized Economies [electronic resource] : The Cases of Chile, New Zealand, Peru and Uruguay, Acosta Ormaechea, Santiago..

Author/Creator:
Acosta Ormaechea, Santiago.
Publication:
Washington, D.C. : International Monetary Fund, 2011.
Format/Description:
Government document
Book
1 online resource (21 p.)
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 11/87.
IMF Working Papers; Working Paper No. 11/87.
Status/Location:
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Local subjects:
Actual inflation. (search)
Aggregate demand. (search)
Average inflation. (search)
Average inflation rate. (search)
Central bank. (search)
Central Banks and Their Policies. (search)
Contractionary monetary policy. (search)
Dollarization. (search)
Economic models. (search)
Exchange rates. (search)
Foreign currency. (search)
Foreign exchange. (search)
Inflation. (search)
Inflation rate. (search)
Inflation response. (search)
Inflation target. (search)
Inflation targeting. (search)
Inflation targeting regime. (search)
Inflationary pressures. (search)
Interest rates. (search)
Monetary aggregates. (search)
Monetary arrangement. (search)
Monetary authority. (search)
Monetary economics. (search)
Monetary fund. (search)
Monetary instrument. (search)
Monetary policy. (search)
Monetary Policy (Targets, Instruments, and Effects). (search)
Monetary policy decisions. (search)
Monetary policy instrument. (search)
Monetary policy transmission mechanism. (search)
Monetary transmission. (search)
Monetary transmission mechanism. (search)
Money market. (search)
Transmission of monetary policy. (search)
Chile. (search)
New Zealand. (search)
Peru. (search)
Uruguay. (search)
Summary:
The paper conducts a comparative study of the monetary policy transmission in two economies that run a well-established IT regime, Chile and New Zealand, vis-à-vis two economies operating under relatively newer IT regimes, and which are exposed to a significant degree of dollarization, Peru and Uruguay. It is shown that the traditional interest rate channel is effective in Chile and New Zealand. For Peru and Uruguay, the exchange rate channel is instead more relevant in the transmission of monetary policy. This latter result follows from the limited impact of the policy rate in curbing inflationary pressures in these two countries, in combination with the fact that they have a relatively large and persistent exchange rate pass through. Finally, it is shown that the on-going de-dollarization process of Peru and Uruguay has somewhat strengthened their monetary transmission through the interest rate channel.
Notes:
Description based on print version record.
Contributor:
Acosta Ormaechea, Santiago.
Coble F., David.
Other format:
Print Version:
ISBN:
1455234095:
9781455234097
ISSN:
1018-5941
Publisher Number:
10.5089/9781455234097.001
Access Restriction:
Restricted for use by site license.