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Estimación de una Función de Reacción para la Política Monetaria en Bolivia
[Estimating a Monetary Policy Reaction Function for Bolivia]

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  • Cernadas, Luis
  • Aldazosa, René

Abstract

The paper models the behavior of the Central Bank of Bolivia, through the estimation of reaction functions. According to the monetary program, the central bank implements its policy through the use of monetary aggregates. However, given the crawling peg exchange rate regime, the nominal exchange rate became a very important variable for economic policy management. Additionally, the reduction in levels of dollarization have caused an improvement in the transmission mechanism from interest rates to prices. Thus, we estimate three reaction functions: one for the nominal exchange rate, other for the interest rate and other for the net loans. The results indicate that this variable adequately explains the stance of the monetary authority.

Suggested Citation

  • Cernadas, Luis & Aldazosa, René, 2011. "Estimación de una Función de Reacción para la Política Monetaria en Bolivia [Estimating a Monetary Policy Reaction Function for Bolivia]," MPRA Paper 40592, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:40592
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    Cited by:

    1. Roger Alejandro Banegas Rivero & Marco Alberto N ez Ram rez & Sacnict Valdez del R o, 2018. "Non-Conventional Monetary Policy: The Case of Bolivia," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 59-67.

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    More about this item

    Keywords

    Política Monetaria; Mecanismos de Transmisión; Función de Reacción; Bolivia;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates

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