Monetary policy at the zero lower bound: the Chilean experience

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Date

2014

Journal Title

Journal ISSN

Volume Title

Publisher

Banco Central de Chile

Abstract

Description

The global financial crisis that started in 2008 dramatically changed the analysis and implementation of monetary policy worldwide. Central banks were at the center of the stage during that time implementing both conventional and unconventional policies. Not only were monetary policy rates drastically reduced but also diverse policy measures were implemented: purchases of a wide range of financial assets lending to financial institutions intervening exchange rate markets and paying interest on reserves. Given that these policies challenged the conventional view embedded in the predominant monetary policy model within which central banks control only a short-term interest rate it is most important to understand how these policies have worked and to what extent they were successful.

Keywords

POLÍTICA MONETARIA, CRISIS FINANCIERA, CRISIS ECONÓMICA 2008, BANCOS CENTRALES

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