Financial Frictions and the Transmission of Foreign Shocks in Chile

摘要: We set up and estimate a DSGE model of small open economy to assess the role domestic financial frictions in propagating foreign shocks. In particular, features two types frictions: one relationship between depositors banks (following Gertler Karadi, 2011) other borrowers (along lines Bernanke et al, 1999). use Chilean data model, following Bayesian approach. find that presence increases importance shocks explaining consumption, inflation, policy rate, real exchange rate trade balance. contrast, under these output investment is somehow reduced. The behavior its interaction with key understand results.