| Description |
1 online resource (24 pages) |
| Series |
IMF working paper, 1018-5941 ; WP/17/208 |
|
IMF working paper ; WP/17/208.
|
| Contents |
Cover -- TABLE OF CONTENTS -- ABSTRACT -- I. INTRODUCTION -- II. RELATED LITERATURE -- III. DATA AND METHODOLOGY -- IV. RESULTS FROM VAR METHODOLOGY -- V. EVENT STUDY -- VI. CONCLUSIONS |
| Summary |
This paper presents a comparative analysis of the macroeconomic adjustment in Chile, Colombia, and Peru to commodity terms-of-trade shocks. The study is done in two steps: (i) an analysis of the impulse responses of key macroeconomic variables to terms-of-trade shocks and (ii) an event study of the adjustment to the recent decline in commodity prices. The experiences of these countries highlight the importance of flexible exchange rates to help with the adjustment to lower commodity prices, and staying vigilant in addressing depreciation pressures on inflation through tightening monetary policies. On the fiscal front, evidence shows that greater fiscal space, like in Chile and Peru, gives more room for accommodating terms-of-trade shocks |
| Notes |
Online resource; title from PDF title page (IMF eLibrary, viewed February 28, 2018) |
| Subject |
Jel Classification Numbers: E62.
|
|
Peru.
|
|
Chile.
|
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Colombia.
|
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Western Hemisphere.
|
| Form |
Electronic book
|
| Author |
International Monetary Fund. Western Hemisphere Department, issuing body.
|
| ISBN |
9781484323908 |
|
1484323904 |
|
1484320646 |
|
9781484320648 |
|
