A large literature estimates the exchange rate pass-through to prices (ERPT) using reduced-
form approaches, whose results are an important input for Central Banks. We show two …

Abstract The Extended Model for Analysis and Simulations (Xmas) is the Central Bank of
Chile's newest dynamic stochastic general equilibrium (DSGE) model. Designed for …

A labor market specification featuring search frictions and unemployment within an
otherwise standard New Keynesian small open economy model significantly improves its …

We analyse the transmission mechanism of commodity price shocks in inflation targeting
emerging economies. Using a panel vector autoregression, we find that for a commodity …

We present a fully-edged dynamic stochastic general equilibrium (DSGE) model for the
Chilean economy to explain the economy's adjustments to external shocks, explicitly …

Most existing DSGE models used for monetary policy analysis and forecasting assume that
the labor market always clears at a sticky nominal wage (a la Calvo) through variations …

An immigration shock has an ambiguous effect on inflation. On one hand, aggregate
consumption increases with a suddenly larger population; this “demand channel” creates …

We study how bank collateral assets and their pledgeability affect the amplitude of credit
cycles. To this end, we develop a tractable model where bankers intermediate funds …

We evaluate the dynamics of a small and open economy under simple rules for alternative
monetary-policy instruments, in a model with imperfectly anchored expectations. The …

We propose a dynamic general equilibrium model to study the optimal reaction to terms of
trade shocks when international financial markets are imperfect and the composition of …