Albagli, ElíasCalani Cadena, Miguel MauricioHadzi-Vaskov, MetodijMarcel Cullel, MarioRicci, Luca Antonio2021-10-192021-10-192021-100717-6686978-956-7421-69-5978-956-7421-70-1 (pdf)https://hdl.handle.net/20.500.12580/6134Chile offers an example of a country that has overcome the fear of floating by reducing balance-sheet mismatches; enhancing financial-market development; and improving monetary, fiscal, and political institutions; while strengthening policy credibility. Under the floating regime, Chile’s economic adjustment to external shocks appears significantly improved, and its exchange-rate passthrough has substantially declined. Our results reinforce the case that moving to a clear and credible floating regime can be associated with a reduction in the fear of floating via economic transformation (like smaller balancesheet mismatches, a larger hedging market, and a lower exchange-rate passthrough).Chile offers an example of a country that has overcome the fear of floating by reducing balance-sheet mismatches; enhancing financial-market development; and improving monetary, fiscal, and political institutions; while strengthening policy credibility. Under the floating regime, Chile’s economic adjustment to external shocks appears significantly improved, and its exchange-rate passthrough has substantially declined. Our results reinforce the case that moving to a clear and credible floating regime can be associated with a reduction in the fear of floating via economic transformation (like smaller balancesheet mismatches, a larger hedging market, and a lower exchange-rate passthrough)..pdfSección o Parte de un Documentop. 413-470enAttribution-NonCommercial-NoDerivs 3.0 ChileTIPO DE CAMBIOMERCADO FINANCIEROINFLACIÓNArtículo