• Economics
  • Published 2017

Financial and real shocks and the effectiveness of monetary and macroprudential policies in Latin American countries

@inproceedings{GarcaCicco2017FinancialAR,
  title={Financial and real shocks and the effectiveness of monetary and macroprudential policies in Latin American countries},
  author={Javier Garc{\'i}a-Cicco and Markus Kirchner and Julio A. Carrillo and Diego Rodr{\'i}guez and Fernando P{\'e}rez and Roc{\'i}o Gondo and Carlos Montoro and Roberto Chang},
  year={2017}
}
This work compares the impact of monetary and macroprudential policies on financial and real sectors in four Latin American countries: Chile, Colombia, Mexico and Peru, and explores the commonalities and differences in the reaction to shocks to both the financial and real sector. In order to do that, we estimate a New Keynesian small open economy model with frictions in the domestic financial intermediation sector and a commodity sector for each country. Results suggest that financial shocks… CONTINUE READING