The Monetary Transmission Mechanism in Chile: A Medium-Sized Macroeconometric Model

摘要: This paper proposes and estimates a macroeconomic model of the Chilean economy. The is designed as short- medium-term inflation-forecasting tool, which precisely identifies transmission mechanism followed by monetary policy in Chile. specifies short-run dynamics well long-run equilibrium conditions. Cointegration error correction techniques are used to estimate relevant parameters, while some relations calibrated. includes main components aggregate demand external accounts, supply-side block that relies on standard production function, specification for asset prices, wage/markup/price labor market block. long run interdependence among each these factors taken into account yield forward-looking dynamic equilibrium. key steadystate relative such real interest rate, exchange sovereign risk premium, endogenously determined. explore quantify effects inflation how transmitted inflation. results obtained here compared other simpler but less informative models, VAR smaller scale model, based Phillips curves. analyzes response variables number permanent shocks.