To cut or not to cut? : that is the (Central Bank's) question in search of the neutral interest rate in Latin America /

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Bibliographic Details
Author / Creator:	Magud, Nicolas E.
Imprint:	Washington, D.C. : International Monetary Fund, 2013.
Description:	1 online resource (47 pages :) : illustrations.
Language:	English
Series:	IMF working paper ; WP/13/243
Subject:	Interest rates -- Latin America -- Econometric models. Interest -- Latin America. Interest. Interest rates -- Econometric models. Latin America.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12502057

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Other authors / contributors:	Tsounta, Evridiki.
ISBN:	9781475512502 9781475512694
Notes:	Includes bibliographical references.
Summary:	This paper estimates neutral real interest rate (NRIR) ranges for 10 Latin American countries that either have full-fledged inflation targeting regimes in place or have recently adopted them, using an array of methodologies commonly used in the literature. We find that NRIRs have declined in the last decade, with more economically and financially developed economies exhibiting lower NRIR levels. Based on the estimated NRIRs, we assess that the current monetary stance (measured by the interest rate gap) is appropriately neutral in most of the considered economies, in line with closing output ga.

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