02086cas a2200253 a 4500 AALejournalIMF002428 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451853629 1018-5941 BD-DhAAL BD-DhAAL Rebucci, Alessandro. Retail Bank Interest Rate Pass-Through : Is Chile Atypical? / Alessandro Rebucci, Marco Espinosa-Vega. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (35 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates empirically the pass-through of money market interest rates to retail banking interest rates in Chile, the United States, Canada, Australia, New Zealand, and five European countries. Overall, Chile's pass-through does not appear atypical. Based on a standard error-correction model, we find that, as in most countries considered, Chile's measured pass-through is incomplete. But Chile's pass-through is also faster than in many other countries considered and is comparable to that in the United States. While we find no significant evidence of asymmetry in Chile's pass-through across states of the interest rate or monetary policy cycle, we do find some evidence of parameter instability, around the time of the Asian and Russian crises. However, we do not find evidence that the switch to a more flexible exchange rate regime in 1999 and the "nominalization" of Chile's interest rate targets in 2001 have affected significantly the pass-through process. Mode of access: Internet Espinosa-Vega, Marco. IMF Working Papers; Working Paper ; No. 2003/112 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/112/001.2003.issue-112-en.xml IMF e-Library