Market Interest Rate Dynamics in Times of Financial Turmoil

Authors

  • Juan Becerra
  • Luis Ceballos S
  • Julio Cordova
  • Michael Pedersen

Abstract

The significant reduction of the monetary policy rate (MPR) during 2009 has offset the rise in lending rates caused by increased uncertainty in the country and abroad. This paper comes to this conclusion after examining the evolution of interest rates of consumer and commercial loans in order to distinguish between the effects caused by MPR transmission from those caused by the increases in risk premiums occurred in 2008. The above is done through counterfactual simulations using the relevant variables.

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Published

28-04-2010

How to Cite

Becerra, J. ., S, L. C., Cordova , J. ., & Pedersen, M. . (2010). Market Interest Rate Dynamics in Times of Financial Turmoil. ECONOMÍA CHILENA, 13(1), 5–22. Retrieved from https://xn--economachilena-5lb.cl/index.php/economiachilena/article/view/132

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Articles