Incorporating financial sector risk into monetary policy models: application to Chile

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dc.contributor.authorGray, Dale
dc.contributor.authorGarcía T., Carlos
dc.contributor.authorLuna B., Leonardo
dc.contributor.authorRestrepo L., Jorge E.
dc.coverage.spatialCHILEes_ES
dc.date.accessioned2019-11-01T00:04:53Z
dc.date.available2019-11-01T00:04:53Z
dc.date.issued2010
dc.descriptionThis article analyzes whether market-based financial stability indicators (FSIs) should be included in monetary policy models and, if so, how. Since the economy and interest rates affect financial sector credit risk, and the financial sector affects the economy, this article builds a model of financial sector vulnerability and integrates it into a macroeconomic framework, typically used for monetary policy analysis. More specifically, should the central bank explicitly include the financial stability indicator in its monetary policy (interest rate) reaction function? This is the most important question to be answered in this article. The alternative would be to react only indirectly to financial risk by reacting to inflation and gross domestic product (GDP) gaps, since they already include the effect that financial factors have on the economy.
dc.file.nameBCCh-sbc-v15-p159_197
dc.format.pdf
dc.format.extentSección o Parte de un Documento
dc.format.mediump. 159-197
dc.identifier.isbn978-956-7421-34-3
dc.identifier.urihttps://hdl.handle.net/20.500.12580/3761
dc.language.isoeng
dc.publisherBanco Central de Chile
dc.relation.ispartofSeries on Central Banking, Analysis, and Economic Policies, no. 15
dc.rightsAttribution-NonCommercial-NoDerivs 3.0 Chile*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/cl/*
dc.subjectRIESGO FINANCIEROes_ES
dc.subjectPOLÍTICA MONETARIAes_ES
dc.titleIncorporating financial sector risk into monetary policy models: application to Chile
dc.type.docArtículo

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