On December 12, 2019, Fed in Print will introduce its new platform for discovering content. Please direct your questions to Anna Oates

Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of New York
Staff Reports
Inflation dynamics in a small open-economy model under inflation targeting: some evidence from Chile
Marco Del Negro
Frank Schorfheide
Abstract

This paper estimates a small open-economy dynamic stochastic general equilibrium (DSGE) model, specified along the lines of GalĂ­ and Monacelli (2005) and Lubik and Schorfheide (2007), using Chilean data for the full inflation-targeting period of 1999 to 2007. We study the specification of the policy rule followed by the Central Bank of Chile, the dynamic response of inflation to domestic and external shocks, and the change in these dynamics under different policy parameters. We use the DSGE-VAR methodology from our earlier work (2007) to assess the robustness of the conclusion to the presence of model misspecification.


Download Full text
Download Full text
Cite this item
Marco Del Negro & Frank Schorfheide, Inflation dynamics in a small open-economy model under inflation targeting: some evidence from Chile, Federal Reserve Bank of New York, Staff Reports 329, 2008.
More from this series
JEL Classification:
Subject headings:
Keywords: Stochastic analysis ; Time-series analysis ; Econometric models ; Banks and banking; Central ; Monetary policy
For corrections, contact Amy Farber ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal