HOW SENSITIVE IS VOLATILITY TO EXCHANGE RATE REGIMES? - THE CASE OF CHILE

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Resumen

In September 1999, the Central Bank of Chile eliminated the floating band for the nominal exchange rate, which operated since 1984, and established a free float. This lasted until the burst of the last Argentinean economic crisis in July 2001. Since then, the Central Bank has smoothed out the exchange rate path by selling U.S. dollars and/or issuing U.S. dollar-denominated bonds. We examine the free float period by assessing whether the increase in exchange rate volatility was as sharp as expected. We show that volatility went up, but only slightly.

Idioma originalInglés
Título de la publicación alojadaLatin American Financial Markets
Subtítulo de la publicación alojadaDevelopments in Financial Innovations
EditoresHarvey Arbelaez, Reid William Click
Páginas65-97
Número de páginas33
DOI
EstadoPublicada - 2004

Serie de la publicación

NombreInternational Finance Review
Volumen5
ISSN (versión impresa)1569-3767

Huella

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