Comfort in floating: taking stock of twenty years of freely floating exchange rate in Chile

Chile offers an example of a country that has overcome the fear of floating by reducing balance-sheet mismatches; enhancing financial-market development; and improving monetary, fiscal, and political institutions; while strengthening policy credibility. Under the floating regime, Chile’s economic ad...

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Autores principales: Albagli, Elías, Calani Cadena, Miguel Mauricio, Hadzi-Vaskov, Metodij, Marcel Cullel, Mario, Ricci, Luca Antonio
Formato: Artículo
Lenguaje:English
Publicado: Banco Central de Chile 2021
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Acceso en línea:https://hdl.handle.net/20.500.12580/6134
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spelling oai-20.500.12580-61342021-10-19T18:23:32Z Comfort in floating: taking stock of twenty years of freely floating exchange rate in Chile Albagli, Elías Calani Cadena, Miguel Mauricio Hadzi-Vaskov, Metodij Marcel Cullel, Mario Ricci, Luca Antonio TIPO DE CAMBIO MERCADO FINANCIERO INFLACIÓN Chile offers an example of a country that has overcome the fear of floating by reducing balance-sheet mismatches; enhancing financial-market development; and improving monetary, fiscal, and political institutions; while strengthening policy credibility. Under the floating regime, Chile’s economic adjustment to external shocks appears significantly improved, and its exchange-rate passthrough has substantially declined. Our results reinforce the case that moving to a clear and credible floating regime can be associated with a reduction in the fear of floating via economic transformation (like smaller balancesheet mismatches, a larger hedging market, and a lower exchange-rate passthrough). Chile offers an example of a country that has overcome the fear of floating by reducing balance-sheet mismatches; enhancing financial-market development; and improving monetary, fiscal, and political institutions; while strengthening policy credibility. Under the floating regime, Chile’s economic adjustment to external shocks appears significantly improved, and its exchange-rate passthrough has substantially declined. Our results reinforce the case that moving to a clear and credible floating regime can be associated with a reduction in the fear of floating via economic transformation (like smaller balancesheet mismatches, a larger hedging market, and a lower exchange-rate passthrough). 2021-10-19T14:25:36Z 2021-10-19T14:25:36Z 2021-10 Artículo 0717-6686 978-956-7421-69-5 978-956-7421-70-1 (pdf) https://hdl.handle.net/20.500.12580/6134 en Series on Central Banking Analysis and Economic Policies; no. 28 Serie Banca Central, análisis y políticas económicas; no. 28 Attribution-NonCommercial-NoDerivs 3.0 Chile http://creativecommons.org/licenses/by-nc-nd/3.0/cl/ .pdf Sección o Parte de un Documento p. 413-470 application/pdf Banco Central de Chile
institution Banco Central
collection Banco Central
language English
topic TIPO DE CAMBIO
MERCADO FINANCIERO
INFLACIÓN
spellingShingle TIPO DE CAMBIO
MERCADO FINANCIERO
INFLACIÓN
Albagli, Elías
Calani Cadena, Miguel Mauricio
Hadzi-Vaskov, Metodij
Marcel Cullel, Mario
Ricci, Luca Antonio
Comfort in floating: taking stock of twenty years of freely floating exchange rate in Chile
description Chile offers an example of a country that has overcome the fear of floating by reducing balance-sheet mismatches; enhancing financial-market development; and improving monetary, fiscal, and political institutions; while strengthening policy credibility. Under the floating regime, Chile’s economic adjustment to external shocks appears significantly improved, and its exchange-rate passthrough has substantially declined. Our results reinforce the case that moving to a clear and credible floating regime can be associated with a reduction in the fear of floating via economic transformation (like smaller balancesheet mismatches, a larger hedging market, and a lower exchange-rate passthrough).
format Artículo
author Albagli, Elías
Calani Cadena, Miguel Mauricio
Hadzi-Vaskov, Metodij
Marcel Cullel, Mario
Ricci, Luca Antonio
author_facet Albagli, Elías
Calani Cadena, Miguel Mauricio
Hadzi-Vaskov, Metodij
Marcel Cullel, Mario
Ricci, Luca Antonio
author_sort Albagli, Elías
title Comfort in floating: taking stock of twenty years of freely floating exchange rate in Chile
title_short Comfort in floating: taking stock of twenty years of freely floating exchange rate in Chile
title_full Comfort in floating: taking stock of twenty years of freely floating exchange rate in Chile
title_fullStr Comfort in floating: taking stock of twenty years of freely floating exchange rate in Chile
title_full_unstemmed Comfort in floating: taking stock of twenty years of freely floating exchange rate in Chile
title_sort comfort in floating: taking stock of twenty years of freely floating exchange rate in chile
publisher Banco Central de Chile
publishDate 2021
url https://hdl.handle.net/20.500.12580/6134
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