Series on Central Banking, Analysis, and Economic Policies Independence, Credibility, and Independence, Credibility, The Book Series on “Central Banking, Analysis, and Economic Communication of Central Banking Independence, Credibility, and Policies” of the Central Bank of Chile publishes new research on and Communication and Ricardo Reis and Ricardo central banking and economics in general, with special emphasis on Central bank independence, credibility, and good communication sound like no- Pastén Ernesto issues and fields that are relevant to economic policies in developing Communication of Central Banking of Central Banking economies. Policy usefulness, high-quality research, and relevance to brainers. But when you look deeper, you see that the issues are much more complex. Chile and other open economies are the main criteria for publishing What does independence actually mean? How is the governing board nominated? Is editors books. Most research published by the Series has been conducted in it ok to have an independent central bank when it is in charge of macro-prudential or sponsored by the Central Bank of Chile. policies? How is it supposed to weigh activity versus inflation? Can it be truly independent if, as is the case now, it has to work closely with the Treasury? How Volumes in the series: 1. Análisis empírico del ahorro en Chile does its credibility depend on the stance of fiscal policy? Should the members The three topics covered in the title of Felipe Morandé and Rodrigo Vergara, editors of the governing board be free to express their own opinions outside the bank? this volume have proved to be critical 2. Indexation, Inflation, and Monetary Policy Or should the central bank speak with one voice? These issues, and many others, Fernando Lefort and Klaus Schmidt-Hebbel, editors Ernesto Pastén in the remarkable success of modern 3. Banking, Financial Integration, and International Crises are the topics covered in this outstanding book. It should be required reading for central banks around the globe in the Leonardo Hernández and Klaus Schmidt-Hebbel, editors anybody involved in the art of central banking. and Ricardo Reis 4. Monetary Policy: Rules and Transmission Mechanisms fight to control inflation and smooth Norman Loayza and Klaus Schmidt-Hebbel, editors editors macroeconomic fluctuations. Despite these Olivier Blanchard 5. Inflation Targeting: Design, Performance, Challenges and Communication Credibility, Independence, achievements, some old challenges have Norman Loayza and Raimundo Soto, editors Fred Bergsten senior fellow at the Peterson Institute for International Economics and Professor of 6. Economic Growth: Sources, Trends, and Cycles economics emeritus, MIT come back in recent years and new ones Norman Loayza and Raimundo Soto, editors have appeared to make Independence, 7. Banking Market Structure and Monetary Policy Luis Antonio Ahumada and J. Rodrigo Fuentes, editors The Central Bank of Chile’s conferences have made their mark, the choice of topics Credibility, and Communication of Central 8. Labor Markets and Institutions for this volume could not be better, and the list of authors reads like a Who’s Who Banking as critical as ever—perhaps, even Jorge Enrique Restrepo and Andrea Tokman R., editors more so. This volume collects articles 9. General Equilibrium Models for the Chilean Economy of experts. Dig in and sample the fare. You’ll be rewarded. Rómulo Chumacero and Klaus Schmidt-Hebbel, editors contributed by distinguished scholars to 10. External Vulnerability and Preventive Policies Alan S. Blinder Banking of Central the XXIII Annual Conference of the Central Ricardo J. Caballero, César Calderón, and Luis Felipe Céspedes, editors Gordon S. Rentschler Memorial Professor of Economics and Public Affairs, Princeton University 11. Monetary Policy under Inflation Targeting Bank of Chile, which coincided with the Frederic S. Mishkin and Klaus Schmidt-Hebbel, editors thirtieth anniversary of its independence. An excellent collection of research on an important and timely topic of central 12. Current Account and External Financing The chapters in this volume give a fresh Kevin Cowan, Sebastián Edwards, and Rodrigo Valdés, editors bank independence, credibility, and communication. As countries grapple with the 13. Monetary Policy under Uncertainty and Learning new look to old lessons, discuss the Covid-19 pandemic public debt has risen to record highs, which could ultimately put Klaus Schmidt-Hebbel and Carl E. Walsh, editors latest developments, and provide new 14. Banco Central de Chile 1925-1989, Una Historia Institucional (vol. I y II) pressure on central bank independence. This book is essential reading for policy recommendations for central banks to Camilo Carrasco makers and researchers as they design and navigate what will be a challenging 15. Financial Stability, Monetary Policy, and Central Banking meet some of their biggest challenges of Rodrigo A. Alfaro, editor period ahead for monetary policy. 16. Monetary Policy under Financial Turbulence the times. Luis Felipe Céspedes, Roberto Chang, and Diego Saravia, editors Gita Gopinath 17. Fiscal Policy and Macroeconomic Performance John Zwaanstra Professor of International Studies and of Economics, Harvard University and Director of Luis Felipe Céspedes and Jordi Galí, editors Research Department and Economic Counsellor, International Monetary Fund 18. Capital Mobility and Monetary Policy Miguel Fuentes D., C1audio E. Raddatz, and Carmen M. Reinhart, editors 19. Macroeconomic and Financial Stability: Independence, credibility, and communication are fundamental foundations Challenges for Monetary Policy Sofía Bauducco, Lawrence Christiano, and C1audio Raddatz, editors of modern central banking. This outstanding collection of frontier research 20. Global Liquidity, Spillovers to Emerging Markets and Policy Responses by prominent academics and central bankers not only reassess whether these C1audio Raddatz, Diego Saravia, and Jaume Ventura, editors foundations remain stable and fit for their purpose but also discuss how they can 21. Economic Policies in Emerging-Market Economies Festschrift in Honor of Vittorio Corbo be improved and adjusted to future challenges. The lessons from the book are highly Ricardo J. Caballero and Klaus Schmidt-Hebbel, editors relevant for inspiring future research and guiding future policy. This makes the 22. Commodity Prices and Macroeconomic Policy Rodrigo Caputo and Roberto Chang, editors book essential reading for anyone interested in current and future central banking 23. 25 Años de Autonomía del Banco Central de Chile and for policymakers that lead current and will lead future central banking. Alberto Naudon D. and Luis Álvarez V., editors 28 24. Monetary Policy through Asset Markets: Lessons Lars E. O. Svensson Series on from Unconventional Measures and Implications Affiliated Professor, Department of Economics, Stockholm School of Economics for an Integrated World Central Elías Albagli, Diego Saravia, and Michael Woodford, editors Banking, 25. Monetary Policy and Global Spillovers: Mechanisms, Effects, and Policy Measures Analysis, Enrique G. Mendoza, Ernesto Pastén, and Diego Saravia, editors and Economic Amanecer en Peñalolén 26. Monetary Policy and Financial Stability: Transmission Mechanisms Policies Benito Rebolledo and Policy Implications Oil on canvas, 42.5 x 55.5 cm Álvaro Aguirre, Markus Brunnermeier, and Diego Saravia, editors Collection of the Central Bank of Chile 27. Changing Inflation Dynamics, Evolving Monetary Policy Banco Central de Chile / Central Bank of Chile Gonzalo Castex, Jordi Galí, and Diego Saravia, editors Series on Central Banking, Analysis, and Economic Policies Independence, Credibility, and Independence, Credibility, The Book Series on “Central Banking, Analysis, and Economic Communication of Central Banking Independence, Credibility, and Policies” of the Central Bank of Chile publishes new research on and Communication and Ricardo Reis and Ricardo central banking and economics in general, with special emphasis on Central bank independence, credibility, and good communication sound like no- Pastén Ernesto issues and fields that are relevant to economic policies in developing Communication of Central Banking of Central Banking economies. Policy usefulness, high-quality research, and relevance to brainers. But when you look deeper, you see that the issues are much more complex. Chile and other open economies are the main criteria for publishing What does independence actually mean? How is the governing board nominated? Is editors books. Most research published by the Series has been conducted in it ok to have an independent central bank when it is in charge of macro-prudential or sponsored by the Central Bank of Chile. policies? How is it supposed to weigh activity versus inflation? Can it be truly independent if, as is the case now, it has to work closely with the Treasury? How Volumes in the series: 1. Análisis empírico del ahorro en Chile does its credibility depend on the stance of fiscal policy? Should the members The three topics covered in the title of Felipe Morandé and Rodrigo Vergara, editors of the governing board be free to express their own opinions outside the bank? this volume have proved to be critical 2. Indexation, Inflation, and Monetary Policy Or should the central bank speak with one voice? These issues, and many others, Fernando Lefort and Klaus Schmidt-Hebbel, editors Ernesto Pastén in the remarkable success of modern 3. Banking, Financial Integration,