@misc{10818/62768,
year = {2024},
url = {http://hdl.handle.net/10818/62768},
abstract = {This paper examines the impact of real exchange rate shocks on policy interest rates in the five major inflation-targeting economies in LATAM. Using a SVAR model with identification based on sign and short-run restrictions, we find that monetary policy reacts to real exchange rate shocks across all five countries. Specifically, interest rates rise directly in response to a positive real exchange rate shock (appreciation). A subsequent reversal occurs after a few quarters, with statistical significance observed in three countries. Additionally, shocks to the policy rate are demonstrated to effectively induce a real depreciation of the exchange rate. © 2024 Informa UK Limited, trading as Taylor & Francis Group.},
publisher = {Applied Economics Letters},
title = {Inflation-targeting central bank responses to exchange rate shocks: evidence from Latin America},
doi = {10.1080/13504851.2024.2335372},
author = {Cao-Alvira J.J. and Gomez-Gonzalez J. and Vallejo-Peña J.},
}