The Impact of Monetary Policyon the Bilateral Exchange Rate : Chile Versus the United States / Jeromin Zettelmeyer.
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| Online Access: |
Full Text (via IMF e-Library) |
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| Main Author: | |
| Format: | eBook |
| Language: | English |
| Published: |
Washington, D.C. :
International Monetary Fund,
2003.
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| Series: | IMF working paper ;
WP/2003/071. |
| Abstract: | This paper examines the reaction of the bilateral Ch USD/USD exchange rate to monetary policy actions in Chile and the United States. The approach is to regress the change in the exchange rate following a policy announcement on changes in market interest rates in response to the same announcement. U.S. monetary policy actions that raise the three-month treasury bill rate by 1 percentage point lead to depreciations of the Chilean peso by about 1.5 to 2 percent. The exchange rate also reacts to monetary policy actions in Chile, but the response appears to be smaller, and cannot be estimated with much precision on the available sample. |
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| Physical Description: | 1 online resource (23 pages) |
| ISSN: | 1018-5941 |
| Source of Description, Etc. Note: | Description based on print version record. |