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Is There Lendign Rate Stickiness in the Chilean Banking Industry?

In: Banking Market Structure and Monetary Policy

Author

Listed:
  • Solange Berstein

    (Superintendencia de Pensiones)

  • J. Rodrigo Fuentes

    (Pontificia Universidad Católica de Chile)

Abstract
This paper provides new empirical evidence on macroeconomic policies and results in Latin America and the Caribbean (LAC), based on recent data for the region and the world at large. Our results show that: (i) both monetary and fiscal policies are counter- (pro-) cyclical when credibility is high (low), (ii) the accuracy of inflation-targeting central banks in meeting their targets rises with central bank independence and declines with country risk, (iii) intermediate exchange-rate regimes became less persistent than hard pegs and floats after the Asian crisis, (iv) exchange rate regimes do matter for inflation and growth – and regime transitions have significant output and inflation consequences (v) international differences in productivity growth do not track well real exchange rate (RER) trends and RER misalignments are not resolved by supply reforms that raise growth, (vi) LAC’s financial integration with international capital markets has increased significantly during the last decade, (vii) adverse foreign shocks explain a major part of LAC’s growth performance during the 1990s, and (viii) the composition of foreign capital flows does matter for growth.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Solange Berstein & J. Rodrigo Fuentes, 2004. "Is There Lendign Rate Stickiness in the Chilean Banking Industry?," Central Banking, Analysis, and Economic Policies Book Series, in: Luis Antonio Ahumada & J. Rodrigo Fuentes & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.),Banking Market Structure and Monetary Policy, edition 1, volume 7, chapter 6, pages 183-210, Central Bank of Chile.
    • Handle: RePEc:chb:bcchsb:v07c06pp183-210
    as

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    File URL: https://si2.bcentral.cl/public/pdf/banca-central/pdf/v7/183_210berstein_fuentes.pdf
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    References listed on IDEAS

    as
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