Departamento de Economía

Seminario: Rationalizing “Unconventional” Monetary Policies

Javier Garcia-Cicco

PhD in Economics, Duke University. Senior Economist at Central Bank of Chile and Research Professor at Universidad Católica Argentina.

Abstract

We present a small-open-economy model to analyze the role of central bank’s liquidity

management in implementing “unconventional” monetary policies within an inflation

targeting framework (i.e. policies that deviates from an interest-rate rule). We use this

framework to analyze two alternative ”unconventional” policies: sterilized exchangerate

interventions and the expansion in the list of eligible collaterals accepted at the

liquidity facilities operated by the central bank. These policies have been recently

implemented by several central banks: the former as a way to counteract persistent

appreciations in the domestic currency, and the later as a response to the the recent

global financial crisis in 2008. Finally, we also provide a detailed account of the

Chilean experience with these alternative tools since the introduction of the flexible

inflation targeting framework in 1999.

Lugar: Campus Alcorta: Av. Figueroa Alcorta 7350, Ciudad de Buenos Aires.
Contacto: Departamento de Economía

Organiza: Departamento de Economia