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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