Chile : Selected Issues Paper

1CHLEA2008001 Image
Price:  $18.00

Release Date: © July, 2008
ISBN : 978-1-45180-767-7
Stock #: 1CHLEA2008001
Stock Status: On back-order

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This Selected Issues paper examines the acceleration of inflation over the past year in Chile, identifying domestic shocks to food and energy prices as main drivers. The paper uses the Jeanne-Rancière model to calculate Chile’s optimal ratio of international reserves to GDP. It analyzes the stabilization properties of Chile’s macroeconomic framework and compares it with alternative policy rules. The paper concludes that Chile’s framework based on an explicit inflation target, a floating exchange rate, and a structural fiscal surplus rule is superior to other arrangements.


Capital markets , Economic policy , Financial institutions and markets , Fiscal policy , Inflation , International financial system , International liquidity , Monetary policy , Reserves

More publications in this series: IMF Staff Country Reports