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The Monetary Transmission in Dollarized and Non-Dollarized Economies :, The Cases of Chile, New Zealand, Peru and Uruguay, Santiago Acosta Ormaechea, David Coble Fernandez

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
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Key Stylized Facts; 1. Volatility of Selected Variables; 2. Inflation and Policy Rate; 1. Selected Macroeconomic Indicators; 2. Actual Inflacion, Expected Inflation, Target Bands and Policy Rates; III. The Interest Rate Pass Through; 3. Local-Currency Deposit and Lending Rates, and Policy Rate; 3. Pass-Through from the Money Market Rate to the Deposit Rate; 4. Pass-Through from the Money Market Rate to the Lending Rate; IV. Empirical Analysis of the Transmission of Monetary Policy
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (34 p.)
Specific Material Designation
Form Of Item

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