The Adjustment to Commodity Price Shocks in Chile, Colombia, and Peru / Francisco Roch.

Format:

Book

Government document

Author/Creator:

Roch, Francisco.

Series:

IMF Working Papers; Working Paper ; No. 2017/208

IMF Working Papers

Language:

English

Physical Description:

1 online resource (26 pages)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2017.

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.

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

VII. REFERENCES.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

9781484323885

1484323882

9781484323908

1484323904

OCLC:

1009332906