| dc.creator | García, Carlos | |
| dc.date | 2015-03-06T04:00:15Z | |
| dc.date | 2015-03-06T04:00:15Z | |
| dc.date | 2015 | |
| dc.date.accessioned | 2018-04-19T21:15:43Z | |
| dc.date.available | 2018-04-19T21:15:43Z | |
| dc.identifier | Documentos de Investigación 307: 2015, p. 1-43 | |
| dc.identifier | http://repositorio.uahurtado.cl/handle/11242/6629 | |
| dc.identifier.uri | http://repositorioslatinoamericanos.uchile.cl/handle/2250/1373671 | |
| dc.description | We show that the simultaneous existence of two key elements in an open economy—
decreasing returns and risk premium shocks to the exchange rate that violate the
UIP—produce significant changes in the implementation of optimal monetary policy.
First, we demonstrate that it is optimal to accommodate inflation when a positive
shock occurs, but it is preferable to intervene in the exchange rate when the shock
is negative. Second, the empirical evidence of this study, based on five economies
with different degrees of development, shows the relevance of these two elements and
confirms that central banks should pursue an asymmetric and more complex policy
to deal with these type of shocks, rather than a linear Taylor rule that includes the
exchange rate. | |
| dc.language | en_US | |
| dc.publisher | Universidad Alberto Hurtado. Facultad de Economía y Negocios | |
| dc.subject | Decreasing returns to scale | |
| dc.subject | Risk premium shock | |
| dc.subject | Exchange rate | |
| dc.subject | Optimal monetary policy | |
| dc.title | Decreasing returns, risk premium shocks, and optimal monetary policy | |
| dc.type | Artículos de revistas | |
