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Inflation targeting in Chile: Experience and selected issues

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This chapter discusses the Chilean experience with inflation targeting (IT). Emphasis is placed on a number of institutional characteristics of the Chilean IT regime that have contributed to, or acted as a pre‐requisite for, a good track record of inflation control. The chapter also sheds light on particular macroeconomic outcomes, including changes in the dynamics of inflation, as well as on selected practical issues in the conduct of monetary policymaking under IT, including the role of inflation expectations and the exchange rate.
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Document Type: Review Article

Publication date: April 1, 2008

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