Central Bank Communication And Monetary Policy Surprises In Chile

Author : Mr.Andrea Pescatori
Publisher : International Monetary Fund
ISBN 13 : 1484367944
Total Pages : 33 pages
Book Rating : 4.40/5 ( download)

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Download or read book Central Bank Communication and Monetary Policy Surprises in Chile written by Mr.Andrea Pescatori and published by International Monetary Fund. This book was released on 2018-07-06 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses the quality of the CBC’s communication policy by looking at the predictability and effectiveness of monetary policy communications by the Central Bank of Chile (CBC). To do so, we construct indeces of monetary policy surprises for the three major communication channels of the CBC: the release of policy meetings’ statements, minutes, and monetary policy reports (IPoM). We assess monetary policy predictability and efficacy by looking at the size and time-evolution of monetary policy surprises associated with meeting statements and the impact of the above communication channels on asset markets. We find that, in general, the CBC’s has been effective in its forward guidance through its statements and IPoM. Policy actions are quite predictable, especially post the global financia crisis. The response of equity prices and the exchange rate to monetary policy surprises have the right sign but are not robust. We also find an asymmetric response of equity prices to minutes suggesting that market participants extract information on the status of the economy especially when minutes have a loosening effect. Finally, to look at the macroeconomic impact we find that a 100 bps monetary policy tightening shock implies a decline in economic activity (IMACEC) of about 2 pp. after one year, while the response of inflation is more muted.

Author : Mr.Ales Bulir
Publisher : International Monetary Fund
ISBN 13 : 1463992157
Total Pages : 24 pages
Book Rating : 4.56/5 ( download)

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Download or read book Clarity of Central Bank Communication About Inflation written by Mr.Ales Bulir and published by International Monetary Fund. This book was released on 2012-01-01 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines whether the clarity of central bank communication about inflation has changed with the economic environment. We use readability statistics and content analysis to study the clarity of communication on the inflation outlook by seven central banks between 1997 and 2010. Overall, we find no strong indications that central banks were less clear in explaining their policies when faced with higher uncertainty or a less favorable inflation outlook. The global financial crisis, however, did have a negative impact on clarity of central bank communication.

Author : Alicia García-Herrero
Publisher :
ISBN 13 :
Total Pages : 20 pages
Book Rating : 4.53/5 ( download)

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Download or read book Analyzing the Impact of Monetary Policy on Financial Markets in Chile written by Alicia García-Herrero and published by . This book was released on 2018 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 specifically, using data from 2005 to 2014 and a Component GARCH model, we assess whether changes in the communication of the Central Bank of Chile generate particular a permanent or temporary change in the volatility of interest rates, after controlling for changes in monetary policy instruments. Our results show that the volatility in interest rate futures in Chile's swap markets increases following the central bank's communication. However, the impact tends to be temporary instead of permanent and only statistically significant in the pre-crisis period. All in all, our results indicate a lower relevance of Central Bank communication for short term swap markets which may reflect that market participants have learned to anticipate changes in monetary policy communication, especially after the global financial crisis.

Author : Banco Central de Chile
Publisher :
ISBN 13 :
Total Pages : 30 pages
Book Rating : 4.05/5 ( download)

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Download or read book Monetary policy of the Central Bank of Chile written by Banco Central de Chile and published by . This book was released on 2000 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Mr.Andrea Pescatori
Publisher : International Monetary Fund
ISBN 13 : 1484363108
Total Pages : 33 pages
Book Rating : 4.02/5 ( download)

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Download or read book Central Bank Communication and Monetary Policy Surprises in Chile written by Mr.Andrea Pescatori and published by International Monetary Fund. This book was released on 2018-07-06 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses the quality of the CBC’s communication policy by looking at the predictability and effectiveness of monetary policy communications by the Central Bank of Chile (CBC). To do so, we construct indeces of monetary policy surprises for the three major communication channels of the CBC: the release of policy meetings’ statements, minutes, and monetary policy reports (IPoM). We assess monetary policy predictability and efficacy by looking at the size and time-evolution of monetary policy surprises associated with meeting statements and the impact of the above communication channels on asset markets. We find that, in general, the CBC’s has been effective in its forward guidance through its statements and IPoM. Policy actions are quite predictable, especially post the global financia crisis. The response of equity prices and the exchange rate to monetary policy surprises have the right sign but are not robust. We also find an asymmetric response of equity prices to minutes suggesting that market participants extract information on the status of the economy especially when minutes have a loosening effect. Finally, to look at the macroeconomic impact we find that a 100 bps monetary policy tightening shock implies a decline in economic activity (IMACEC) of about 2 pp. after one year, while the response of inflation is more muted.

Author : Mauricio Larraín
Publisher :
ISBN 13 :
Total Pages : 34 pages
Book Rating : 4.26/5 ( download)

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Download or read book Monetary Policy and Long-term Interest Rates in Chile written by Mauricio Larraín and published by . This book was released on 2005 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Marco Vega
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.84/5 ( download)

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Download or read book Assessing Central Bank Communication Through Monetary Policy Statements: Results for Colombia, Chile and Peru written by Marco Vega and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : S. Borağan Aruoba
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.62/5 ( download)

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Download or read book Monetary Policy Surprises in Chile: Measurement & Real Effects written by S. Borağan Aruoba and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Klaus Schmidt-Hebbel
Publisher :
ISBN 13 : 9789567421329
Total Pages : 601 pages
Book Rating : 4.23/5 ( download)

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Download or read book Monetary Policy Under Uncertainty and Learning written by Klaus Schmidt-Hebbel and published by . This book was released on 2009 with total page 601 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Peter J. N. Sinclair
Publisher : Routledge
ISBN 13 : 1135179778
Total Pages : 402 pages
Book Rating : 4.79/5 ( download)

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Download or read book Inflation Expectations written by Peter J. N. Sinclair and published by Routledge. This book was released on 2009-12-16 with total page 402 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inflation is regarded by the many as a menace that damages business and can only make life worse for households. Keeping it low depends critically on ensuring that firms and workers expect it to be low. So expectations of inflation are a key influence on national economic welfare. This collection pulls together a galaxy of world experts (including Roy Batchelor, Richard Curtin and Staffan Linden) on inflation expectations to debate different aspects of the issues involved. The main focus of the volume is on likely inflation developments. A number of factors have led practitioners and academic observers of monetary policy to place increasing emphasis recently on inflation expectations. One is the spread of inflation targeting, invented in New Zealand over 15 years ago, but now encompassing many important economies including Brazil, Canada, Israel and Great Britain. Even more significantly, the European Central Bank, the Bank of Japan and the United States Federal Bank are the leading members of another group of monetary institutions all considering or implementing moves in the same direction. A second is the large reduction in actual inflation that has been observed in most countries over the past decade or so. These considerations underscore the critical – and largely underrecognized - importance of inflation expectations. They emphasize the importance of the issues, and the great need for a volume that offers a clear, systematic treatment of them. This book, under the steely editorship of Peter Sinclair, should prove very important for policy makers and monetary economists alike.