Chile : Selected Issues Paper

Author/Editor:

International Monetary Fund

Publication Date:

July 23, 2008

Electronic Access:

Free Full text (PDF file size is 477 KB).Use the free Adobe Acrobat Reader to view this PDF file

Summary:

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.

Series:

Country Report No. 08/239

Subject(s):

English

Publication Date:

July 23, 2008

ISBN/ISSN:

9781451807677/1934-7685

Stock No:

1CHLEA2008001

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

25

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