Back Matter

Back Matter

Author(s):
Luis I. Jacome H., Yan Carriere-Swallow, Hamid Faruqee, and Krishna Srinivasan
Published Date:
October 2016
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    Index

    A

    • Accountability, 5, 32, 44–45, 45n6

      • in Atlantic model, 74

      • with inflation targeting, 46

    • Argentina, 14n5, 15n7, 19n16

      • exchange rate pass-through in, 102

      • external shocks to, 14

      • financial stability in, 43

      • governing structure in, 17

      • government financing in, 19, 23

      • inflation in, 30, 50

      • insurance companies in, 74n32

      • international reserves in, 14, 23

      • monetary policy development in, 35

      • National Economic Council in, 19n14

      • nationalization of banks in, 16

      • reserve requirements in, 22n25

      • short-term interest rate in, 92

    • Atlantic model, 15, 30

      • accountability in, 74

    • Australia, 119

      • expectations of inflation in, 55f

      • inflation in, 54, 56

      • nominal exchange rate in, 48f

    • Autonomy of monetary policy, 5–6, 29n37, 90–98, 98f

      • determinants of, 96–98

      • from external conditions, 3

      • spillovers that impair, 94

    B

    • Balance of payments, IMF and, 24

    • Banking crisis, in Brazil, 177–78

    • Basel III

      • Brazil and, 174, 176, 177–78, 192

      • Mexico and, 155n14

    • Benchmarks

      • for currency depreciations, 101, 103f

      • for financial shocks, 161, 161t

      • for forward guidance, 136n4

      • for inflation, 102

      • in monetary policy, 148

      • for price stability, 147

    • Bolivia, 15n7, 19n16

      • dollarization in, 86

      • international reserves in, 46

      • short-term interest rate in, 92

    • Boom-bust cycles, risk of, 3

    • Brazil, 15

      • banking crisis in, 177–78

      • Basel III and, 174, 176, 177–78, 192

      • capital flows in, 215

      • countercyclical capital requirement in, 184

      • Credit Bureau in, 180–81

      • credit cycle in, 7

      • Credit Default Law in, 181, 181n12

      • credit-to-GDP gap shock in, 207

      • database monitoring in, 182

      • Deposit Guarantee Fund in, 181

      • Derivatives exposure registry (CED), 181

      • exchange rate in, 47f, 60f

      • exchange rate intervention in, 68

      • exchange rate pass-through in, 102

      • financial crisis of 2008 and, 178, 178n10

      • financial deepening in, 180–81

      • financial stability in, 43

      • Financial Stability Committee (COMEF), 183

      • governing structure in, 43n4, 177n8

      • household indebtedness in, 7, 178, 179f

      • housing loans in, 186n18, 189n20

      • independence of central bank in, 19, 43n2, 47f

      • inflation in, 24, 25f, 29f, 30, 47f, 176–77

      • inflation targeting in, 46, 47f, 56

      • insurance companies in, 74n32

      • IRFs in, 193, 199, 200f, 201f, 202f, 203f, 204f, 205f, 206f, 207

      • liquidity in, 178

      • macroprudential policy in, 173–215, 200f, 201f, 202f, 203f, 204f, 205f, 206f

      • monetary policy in, 28n36, 173–215, 200f, 201f, 202f, 203f, 204f, 205f, 206f

      • money supply in, 24, 25f

      • National Monetary Council in, 183n15, 184, 192

      • optimal policy in, 185–93, 190t–191t

      • regional presence of banks in, 180, 180f

      • reserve requirements in, 176, 186, 188

      • risk-weighted assets in, 72, 188–89, 207

      • short-term interest rate in, 92

      • social mobility in, 180, 181f

      • state-owned bank in, 15n6

      • See also Brazil, Chile, Colombia, Mexico, and Peru

    • Brazil, Chile, Colombia, Mexico, and Peru (LA5), 27–28

      • exchange rate intervention in, 68n28

      • exchange rate pass-through in, 101

      • global integration of, 90

      • in Great Recession, 31

      • inflation targeting in, 47–48, 49t

      • international reserves in, 63

    • Bretton Woods Agreement, 11, 15

      • demise of, 19, 24

      • devaluations and, 24

      • exchange rate and, 24

      • monetary policy in, 24

      • temporary suspension of, 16

    • Brussels International Financial Conference, 13

    C

    • Canada, 119

      • inflation in, 56

      • nominal exchange rate in, 48f

    • Capital flows, 2, 25–26, 70, 84

      • in Brazil, 215

      • dollarization and, 25

      • exchange rate and, 26, 32, 57

      • financial crisis of 2008 and, 27–28, 58, 224

      • foreign exchange and, 28

      • IMF and, 86

      • increases in, 84

      • inflation and, 32

      • interest rate and, 21, 25

      • macroprudential policy and, 28

      • monetary policy and, 12, 84-86

      • in Peru, 49

      • reserve requirements and, 49, 223t

      • spillovers from, 223

      • taxation of outflows, 184

    • Central bank independence, 18–20, 21f, 47f

      • Cukierman index of, 20

      • in Brazil, 43n2

      • in inflation targeting, 44, 46

      • measuring, 45, 45nn6–8

      • for price stability, 43–44

      • reform and, 45t

    • Central banks. See specific topics

    • Chicago Board Options Exchange Volatility Index (VIX), 92, 93, 117, 119

    • Chile, 14n5, 15n7, 19, 19n18

      • assets of central bank in, 23f

      • discount rate in, 21n23

      • economic development in, 15

      • exchange rate in, 47f, 60f

      • exchange rate intervention in, 66f, 68

      • financial stability in, 73

      • fiscal deficit financing in, 19

      • gold standard in, 13n3, 22

      • governing structure in, 17

      • government financing in, 18n13, 23

      • independence of central bank in, 19, 47f

      • inflation in, 24, 25f, 47f, 54

      • inflation targeting in, 46, 47f

      • liquidity in, 63

      • long-term interest rate in, 110n1, 112, 113, 123

      • monetary policy in, 16

      • monetary policy development in, 35

      • in monetary policy golden age, 38

      • money supply in, 24, 25f

      • price stability in, 43

      • reform in, 43

      • reserve requirements in, 19n14

      • short-term interest rate in, 92

      • See also Brazil, Chile, Colombia, Mexico, and Peru

    • China, 32, 174

    • Christiano-Fitzgerald filtered business cycle, 117, 126

    • Colombia, 15nn7–8, 19n16, 19n18, 29f

      • economic development in, 15

      • exchange rate in, 47f, 60f

      • gold standard in, 22

      • governing structure in, 17

      • government financing in, 18n13

      • independence of central bank in, 47f

      • inflation in, 47f

      • inflation targeting in, 46, 47f

      • monetary policy development in, 35

      • in monetary policy golden age, 38

      • price stability in, 43

      • reserve requirements in, 28n36, 220

      • See also Brazil, Chile, Colombia, Mexico, and Peru

    • Commercial banks, liquidity in, 13–14

    • Consumer Price Index (CPI), 90

      • for U.S. term premium, 117, 126–27

    • COPOM. See Monetary Policy Committee

    • Costa Rica, 15, 19n16

      • financial stability in, 43

      • in monetary policy golden age, 38

      • reserve requirements in, 22n25

      • short-term interest rate in, 92

    • Countercyclical capital requirement, 15, 22, 42, 148

      • in Brazil, 184

      • external shocks and, 84

      • in Peru, 7–8

    • Coverage ratio rule, 148, 164

      • in Mexico, 155n14

    • CPI. See Consumer Price Index

    • Credit cycle, in Brazil, 7

    • Credit Default Law, in Brazil, 181, 181n12

    • Credit spread, 151–52

      • financial shock with, 161, 162f

      • macroprudential policy and, 165–69, 167t

      • monetary policy and, 165

      • policy rate on, 165

    • Credit-to-GDP gap, 155n14, 161, 163f

      • in Brazil, 187–88, 207

      • loss function and, 192, 194t–195t

    • Cuba, 15

    D

    • De-dollarization. See Dollarization

    • Depreciation. See Exchange rate

    • Devaluations

      • Bretton Woods Agreement and, 24

      • of exchange rate, 24

      • inflation and, 25n29, 30

      • interest rate and, 25n29

    • Discount rate

      • in Chile, 21n23

      • loss of popularity with, 22

      • in Mexico, 21n24

      • as monetary policy, 21

      • in monetary policy, 21

    • Dollar (U.S.)

      • to gold, 11, 24

      • petro, 25n30

      • widespread use of, 101–2

    • Dollarization, 25, 86

      • and de-dollarization, in Peru, 7–8, 219–20, 219n1, 226, 226f, 227f, 245f, 246f

      • capital inflows and, 25

      • exchange rate and, 220

      • monetary policy autonomy and, 94

      • prudential policy and, 221–27, 223f, 225f, 226f, 227f

      • reserve requirements and, 228, 235–40, 238t–239t, 241t, 242f

    • Dollar swap lines, with Federal Reserve, 3n4

    • Dominican Republic, 15, 19n16, 43, 44t

    • Dynamic stochastic general equilibrium (DSGE), 173, 174, 185–86, 186f, 187f

    E

    • Economic development, 31

      • in Colombia, 15

      • inflation targeting and, 88n2

      • monetary policy for, 15–16, 19

    • Ecuador, 15n7, 19n16

      • gold standard in, 13n3, 22

      • governing structure in, 17

      • monetary policy development in, 36

    • El Salvador, 14, 14n5, 15n7, 19n16

    • Employment, 31

      • unemployment, in U.S., 246f

    • Exchange rate, 2, 23, 26, 41, 47f, 58–62, 60f, 86, 110, 119, 178,

      • benchmarks for, 101, 103f

      • Bretton Woods Agreement and, 24

      • capital flows and, 26, 28, 32, 57

      • de-dollarization and, 220

      • devaluations of, 24

      • fear of floating and, 46n9

      • flexibility of, 46, 58n18, 84–86, 87f, 96

      • following end of commodity supercycle, 58-62

      • foreign exchange and, 222

      • gold standard and, 13n3

      • hedging markets and, 46

      • inflation and, 25n29, 26, 51, 53 110

      • inflation targeting and, 46, 57–69

      • interest rate and, 32, 91, 93n11

      • international reserves and, 46, 62–69, 64f

      • intervention in, 62–69, 66f, 66t, 68n28, 76

      • pegging, 84, 87f

      • price stability and, 90

      • spillovers and, 96

      • transparency in, 67, 69

      • U.S. term premium and, 124t–125t

      • volatility of, 48f, 65n21, 222

    • Exchange rate pass-through, 98–104, 101n20, 105f

      • estimates of, 105f

      • inflation and, 61, 102, 104f

      • inflation targeting and, 104, 104f

    • External shocks, 199

      • in Argentina, 14

      • countercyclical capital requirement and, 84

      • inflation and, 30

      • monetary policy after, 58–62, 84

    F

    • FDI. See Foreign direct investment

    • Fear of floating, exchange rate and, 46n9

    • Federal Open Market Committee, 133

    • Federal Reserve, 32

      • dollar swap lines with, 3n4

      • interest rate of, 247f

      • long-term interest rate and, 96

      • monetary policy of, 94

      • Peru and, 219, 225

      • quantitative easing by, 111, 219, 225

    • Financial accelerator, 150, 175n5

    • Financial crisis of 2008, 1, 41

      • Brazil and, 178, 178n10

      • capital inflows and, 27–28, 58, 224

      • financial shock and, 27

      • forward guidance in, 131

      • macroeconomics and, 145–46

      • Peru and, 222

      • policy rate and, 1

    • Financial deepening, 6

      • in Brazil, 180–81

      • Financial shocks, 158–64, 162f, 163f, 168f

      • benchmarks for, 161, 161t

      • financial crisis of 2008 and, 27

    • Financial stability, 1, 31, 41–42, 69–75, 93

      • banking crises and, 71f

      • in Chile, 73

      • inflation and, 3, 6–7

      • inflation targeting and, 2, 145, 147n4

      • leaning against the wind and, 2

      • liquidity and, 173–74

      • macroprudential policy and, 145–69

      • in Mexico, 73

      • monetary policy and, 145–69, 147n5

      • in Peru, 222

      • reform and, 43

      • in Uruguay, 73

    • Financial Stability Board (FSB), 178

    • Foreign direct investment (FDI), 185

    • Foreign exchange intervention

      • empirical evidence on, 67–68, 76

      • instruments used for, 66

      • microstructure, 62–63

      • portfolio balance channel, 62

      • precautionary saving channel, 63

      • signaling channel, 62

    • Forward guidance, 6

      • benchmarks for, 136n4

      • defined, 131

      • Delphic, 132–33, 136nn5–6

      • in financial crisis of 2008, 131

      • interest rate and, 134–38, 134n2

      • in monetary policy, 131–39

      • Odyssean, 132–33

      • policy rate and, 132, 133

      • state-contingent, 134n1

      • transparency in, 133, 136

    • FSB. See Financial Stability Board

    G

    • Genoa Conference, 13

    • Global financial crisis of 2008. See Financial crisis of 2008

    • Gold

      • dollars to, 11, 24

      • international reserves in, 21

    • Gold standard, 12–13, 12n2

      • collapse of, 14

      • currency issuance and, 18

      • exchange rate and, 13n3

      • in Great Depression, 22

      • inflation and, 30

      • in Mexico, 22

    • Governing structure, of central banks, 17–18

      • in Brazil, 43n4, 177n8

      • in monetary policy golden age, 38

    • Government financing

      • in Argentina, 19, 23

      • in Chile, 18n13, 23

      • in Colombia, 18n13

      • in Great Depression, 23

      • inflation from, 30

      • in Mexico, 18n13, 23, 23n26

      • in Peru, 23

    • Government ownership of banks. See Nationalization (government ownership) of banks

    • Great Depression, 18, 31

      • gold standard in, 22

      • government financing in, 23

    • Great Recession, LA5 in, 31

    • Greenspan conundrum, 111

      • U.S. term premium and, 109

    • Grove mission, 15n8

    • Guatemala, 15, 15n7, 19n16

      • monetary policy development in, 36

    H

    • Hedging markets, exchange rate and, 46

    • Heterodox economic programs, 26

    • Honduras, 15, 19n16

      • in monetary policy golden age, 38

    • Household indebtedness, in Brazil, 7, 178, 179f

    • Housing loans, 175

      • in Brazil, 186n18, 189n20

      • in Peru, 229n9, 230f, 246f

    I

    • IMF. See International Monetary Fund

    • Independence, central bank (see Central bank independence)

    • Inflation, 47f, 50f, 88, 155n14

      • achievements and reversals in reducing, 42–51

      • in Argentina, 30

      • in Australia, 54, 56

      • benchmarks for, 102

      • in Brazil, 24, 25f, 29f, 30, 176–77

      • in Canada, 56

      • capital flows and, 32

      • in Chile, 24, 25f, 29f, 54

      • in Colombia, 29f

      • Delphic forward guidance and, 136n6

      • devaluations and, 25n29, 30

      • exchange rate and, 25n29, 26, 51, 53, 101, 102, 103, 103f, 104f, 110

      • expectations of, 54–56, 93, 97, 97n14

      • external shocks and, 30, 58–62

      • financial stability and, 3, 6–7

      • gold standard and, 30

      • from government financing, 30

      • macroprudential policy on, 207–14, 209t–211t, 213t, 214t

      • in Nicaragua, 30

      • in Peru, 29f, 30, 221n4

      • reduction of, 16, 88–89

      • tolerance for, 15

      • U.S. term premium and, 122

      • volatility of, 4, 48f, 88, 89f

      • See also Price stability

    • Inflation targeting, 41, 47f

      • accountability with, 46

      • central bank independence and, 44, 46

      • economic development and, 88n2

      • effectiveness of, 51–56, 88

      • exchange rate and, 46, 57–69

      • exchange rate pass-through and, 104, 104f

      • expectations of inflation, 54–56, 55f, 57f

      • financial stability and, 2, 145, 147n4

      • framework used by Bank of England, 59

      • in LA5, 47–48, 49t, 58

      • loss function and, 147, 152

      • in monetary policy, 4, 27, 28f, 54n15, 175

      • in Peru, 219

      • price stability from, 146–47

      • reform and, 42–45, 44t

      • transparency with, 46, 49t, 65, 67

    • Insurance companies, 74n32

    • Interdependence, in monetary policy, 3

    • Interest rate

      • capital inflows and, 21, 25

      • devaluations and, 25n29

      • exchange rate and, 91, 93n11

      • exchange rate depreciation and, 32

      • of Federal Reserve, 247f

      • forward guidance and, 134–38, 134n2

      • global financial integration and, 91, 91f

      • liquidity and, 49n11

      • long-term, 95–96, 95f

      • loss function and, 134

      • macroeconomics of, 6

      • medium-term, 109

      • money supply and, 21

      • neutral real, 54

      • nominal, 155n14, 193n23

      • SELIC, 183n14, 184, 208

      • short-term, 6, 90, 92, 92n7, 94, 95–96, 95f

      • spillovers to, 95–96, 95f

      • U.S. term premium and, 6, 109

      • See also Long-term interest rate; Short-term interest rate

    • International Monetary Fund (IMF), 41n1, 68

      • on Brazil, 183

      • capital flows and, 86

      • monetary approach to the balance of payments of, 24

      • World Economic Outlook of, 51–52, 53f

    • International reserves, 7, 41

      • in Argentina, 14, 23

      • exchange rate and, 62–69, 64f

      • foreign exchange and, 46, 62–69

      • in gold, 21

      • gross changes in, 64f

      • in LA5, 63

    • Investment/saving curve (IS), 134

      • macroeconomic block and, 151

    K

    • Keynesian economics, 15

      • See also New Keynesian model

    L

    • LA5. See Brazil, Chile, Colombia, Mexico, and Peru

    • Leaning against the wind

      • financial stability and, 2

      • monetary policy, 146n3, 149, 158–59

    • Lehman Brothers, 3, 3n4, 173

    • Liquidity

      • in Brazil, 178

      • in Chile, 63

      • in commercial banks, 13–14

      • financial stability and, 173–74

      • in Peru, 222

      • petro dollars and, 25n30

      • risk aversion and, 199

    • Loan-to-value (LTV), 186n18, 225

    • Local projection method (LPM), 99

    • Long-term interest rate

      • in Chile, 110n1, 112, 113, 123

      • Federal Reserve and, 96

      • in Mexico, 112, 123

      • spillovers to, 95–96, 95f

      • in U.S. and selected countries, 112f

      • U.S. term premium and, 109, 110–16, 114t, 115t, 126f

    • Loss function, 157, 186–87

      • credit-to-GDP gap shock and, 192, 194t–195t

      • inflation targeting and, 147, 152

      • interest rate and, 134

      • prudential policy and, 137

    • LPM. See Local projection method

    • LTV. See Loan-to-value

    M

    • Macroprudential policy

      • in Atlantic model, 72–74

      • in Brazil, 173–215, 200f, 201f, 202f, 203f, 204f, 205f, 206f

      • capital inflows and, 28

      • interaction with dollarization, 221–23

      • interaction with monetary policy, 75, 173–77

      • credit spreads and, 165–69, 167t

      • financial stability and, 145–69

      • frameworks, 6–8, 72–75

      • and inflation, 207–14, 209t–211t, 213t, 214t

      • in Pacific model, 74

    • Mexico, 16, 19n18

      • autonomy-impairing spillovers in, 94

      • banking crises in, 26

      • Basel III and, 155n14

      • delinquency index in, 155n14

      • discount rate in, 21n24

      • exchange rate in, 47f, 60f

      • foreign exchange intervention in, 68

      • exchange rate pass-through in, 102

      • financial stability in, 43, 73

      • gold standard in, 22

      • government financing in, 18n13, 23, 23n26

      • independence of central bank in, 47f

      • inflation in, 47f

      • inflation targeting in, 46, 47f

      • long-term interest rate in, 112, 123

      • monetary policy development in, 37

      • monetary policy golden age in, 38

      • policy rate in, 49

      • price stability in, 43

      • reserve requirements in, 22, 22n25

      • short-term interest rate in, 92

      • See also Brazil, Chile, Colombia, Mexico, and Peru

    • Microprudental policies, 2n3

    • Monetary approach to the balance of payments, of IMF, 24

    • Monetary policy

      • autonomy. See Autonomy of monetary policy

      • in Brazil, 28n36, 173–215, 200f, 201f, 202f, 203f, 204f, 205f, 206f

      • in Bretton Woods Agreement, 24

      • capital flows and, 12

      • in Chile, 16, 122

      • coordination of, 2

      • credit spreads and, 165

      • developmental phase for, 23–26, 35–37

      • discount rate in, 21

      • early years of, 20–23

      • for economic development, 15–16, 19

      • evolving foundations of, 12–20

      • after external shocks, 58–62, 84

      • of Federal Reserve, 94, 109

      • financial stability and, 145–69, 147n5

      • forward guidance in, 131–39

      • frameworks for, 6–8, 20–29, 22f

      • global financial integration and, 83–106, 85f, 91f

      • golden years of, 26–29, 38

      • independence in, 5–6, 29n37, 90–98, 98f

      • inflation targeting in, 4, 27, 28f, 54n15, 175

      • leaning against the wind, 146n3, 149, 158–59

      • prudential policy and, 139–41

      • reserve requirements in, 22, 22n25

      • risk-weighted assets and, 220–21

      • short-term interest rate as, 111

      • spillovers from, 3, 5–6, 90–98

      • Taylor-type rules and, 93, 175

      • transparency with, 47

    • Monetary Policy Committee (COPOM), 59, 183, 183n14

    • Money supply

      • in Brazil, 24, 25f

      • in Chile, 24, 25f

      • interest rate and, 21

    • Mortgages. See Housing loans

    N

    • National Economic Council, in Argentina, 19n14

    • Nationalization (government ownership) of banks, 15n6, 17, 17t

      • in Argentina, 16

    • Neutral real interest rate, 54

    • New Keynesian model, 136n6, 152

      • financial accelerators and, 175n5

    • New Zealand

      • Delphic forward guidance in, 136n5

      • nominal exchange rate in, 48f

      • transparency in, 65

    • Nicaragua, 15, 19n16

      • reserve requirements in, 22n25

    • Nominal exchange rate, 48f

    • Nominal interest rate, 155n14, 193n23

    O

    • Output gap

      • measurement of, 52

      • revisions to, 51–52

    P

    • Pacific model, 14

      • macroprudential policy in, 74

    • Paraguay, 15, 19n16

      • dollarization in, 86

    • Pegging, of exchange rate, 84, 87f

    • Peru, 15, 15n7, 19n18

      • assets in, 23f

      • autonomy-impairing spillovers in, 94

      • capital flows in, 49

      • car loans in, 229, 229n9, 230f, 246f

      • countercyclical capital requirement in, 7–8

      • de-dollarization in, 7–8, 219–43, 219n1, 221n4, 242f

      • dollarization in, 7–8, 86, 219–20, 219n1, 226, 226f, 245f, 246f

      • exchange rate depreciation in, 59

      • exchange rate volatility in, 65n21

      • Federal Reserve and, 219, 225

      • financial crisis of 2008 and, 222

      • financial stability in, 222

      • gold standard in, 22

      • government financing in, 23

      • housing loans in, 229n9, 230f, 246f

      • inflation in, 29f, 30, 221n4

      • inflation targeting in, 46, 219

      • insurance companies in, 74n32

      • international reserves in, 46

      • liquidity in, 222

      • monetary policy development in, 37

      • in monetary policy golden age, 38

      • price stability in, 43

      • prudential policy in, 219, 221–27, 223f, 225f, 226f, 227f

      • repos for credit expansion in, 233–35, 234f, 235f

      • repos for credit substitution in, 231–33, 232f

      • reserve requirements in, 28n36, 49, 219–43, 219n1, 225f, 238t–239t, 241t

      • risk-weighted assets in, 220–21

      • short-term interest rate in, 92

      • See also Brazil, Chile, Colombia, Mexico, and Peru

    • Petrodollars, liquidity and, 25n30

    • Phillips curve, 134, 140

      • macroeconomic block and, 151

    • Policy rate, 27

      • on credit spreads, 165

      • financial crisis of 2008 and, 1

      • forward guidance and, 132, 133

      • inflation and, 53

      • inflation targeting and, 148

      • in Mexico, 49

    • Price stability, 3, 29–32, 88

      • benchmarks for, 147

      • exchange rate and, 90

      • independence of central bank for, 43–44

      • from inflation targeting, 146–47

      • reform and, 43

    • Prudential policy

      • de-dollarization and, 221–27, 223f, 225f, 226f, 227f

      • loss function and, 137

      • in monetary policy, 139–41

      • in Peru, 219, 221–27, 223f, 225f, 226f, 227f

      • risk aversion and, 138–40

      • See also Macroprudential policy

    Q

    • Quantitative easing

      • in Brazil, 178

      • by Federal Reserve, 111, 219, 225

    R

    • Ramsey-type optimal policy analysis, 175n3

    • Real exchange rate, 151

    • Real Plan, 177

    • Reform

      • financial stability and, 43

      • independence of central bank and, 45t

      • inflation targeting and, 42–45, 44t

      • price stability and, 43

    • Repos for credit expansion, in Peru, 233–35, 234f, 235f

    • Repos for credit substitution, in Peru, 231–33, 232f

    • Reserve requirements

      • in Brazil, 176, 186, 188

      • capital flows and, 49

      • capital inflows and, 223t

      • in Chile, 19n14

      • in Colombia, 28n36, 220

      • de-dollarization and, 228, 235–40, 238t–239t, 241t, 242f

      • in Mexico, 22, 22n25

      • in monetary policy, 22, 22n25

      • in Peru, 28n36, 49, 219–43, 219n1, 225f, 238t–239t, 241t

    • Risk aversion, 6

      • liquidity and, 199

      • prudential policy and, 138–40

    • Risk-neutral state, 111, 113, 115t, 117

    • Risk-weighted assets, 7

      • in Brazil, 72, 188–89, 207

      • monetary policy and, 220–21

      • in Peru, 220–21

    S

    • Second World War, 15

    • SELIC interest rate, 183n14, 184, 208

    • Short-term interest rate, 6, 90, 92, 92n7, 94

      • as indicator of monetary policy, 111

      • spillovers to, 95–96, 95f

    • Social mobility, in Brazil, 180, 181f

    • Spillovers

      • that impair monetary policy autonomy, 94

      • from capital flows, 223

      • exchange rate and, 96, 119

      • to interest rates, 95–96, 95f, 122

      • from macroeconomic policy, 174

      • in monetary policy, 3, 5–6, 90–98, 118–26

    • State-owned banks. See Nationalization (government ownership) of banks

    T

    • Tablita arrangements, 25, 25n29

    • Taper tantrum episode, 3, 5, 5n8, 65, 68

      • U.S. term premium and, 109

    • Taylor-type monetary policy rule, 93, 148, 175, 187

    • Term premium, 109–29, 113f

      • data for, 126–27

      • empirical model for, 116

      • estimation of, 127–29

      • exchange rate and, 124t–125t

      • impact on small and open economies from U.S. term premium, 116–25

      • inflation and, 122

      • for interest rate, 6

      • long-term interest rate and, 109, 110–16, 114t, 115t, 126f

      • quantitative easing with, 111

      • in small open economies, 112–16

    • Transparency, 45n6, 187

      • in exchange rate, 67, 69

      • in forward guidance, 133, 136

      • with inflation targeting, 46, 49t, 65, 67

      • with monetary policy, 47

      • in New Zealand, 65

    U

    • Unemployment, in U.S., 246f

    • United States (U.S.)

      • long-term interest rate in, 112f

      • monetary policy of, 109

      • Treasury Bills of, 247f

      • unemployment in, 246f

      • See also Federal Reserve; U.S. term premium

    • Uruguay, 15, 19n16

      • dollarization in, 86

      • financial stability in, 73

      • insurance companies in, 74n32

      • in monetary policy golden age, 38

      • short-term interest rate in, 92

      • state-owned bank in, 15n6

    V

    • Vector autoregressions (VAR), 91, 93

      • for estimating spillovers, 92–93, 116–17

      • interacted-panel (IPVAR), 96–97

      • identified impulse-response functions, 109, 117, 118, 118t

      • for U.S. term premium, 117

    • Venezuela, 14, 14n5, 15n7, 19n16

      • banking crises in, 26

      • financial stability in, 43

      • inflation in, 50

      • in monetary policy golden age, 38

      • reserve requirements in, 22n25

    • VIX. See Chicago Board Options Exchange Volatility Index

    W

    • World Economic Outlook, 51–52, 53f

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