Macro Policies and Public Debt in Chile

10 Pages Posted: 13 Apr 2013

See all articles by Sebastián Claro

Sebastián Claro

Pontificia Universidad Catolica de Chile; Central Bank of Chile

Claudio Soto

Central Bank of Chile - Macroeconomic Analysis Unit

Date Written: October 1, 2012


This note characterises the evolution of Chile's public debt, and discusses its implications for the management of the country's monetary policy. Historically, the main issuer of public debt in Chile was the central bank. The government, in turn, has recently started to engage in a more active debt policy, with the aim of deepening the market for risk-free securities and diversifying its funding sources. In general, the soundness and predictability of fiscal policy and the high degree of coordination between the government and the central bank has meant that the debt policy of the fiscal authority has posed no major challenge for the conduct of monetary policy. Moreover, the government's positive net asset position government has played an important role, allowing the central bank to fulfill its price and financial stability objectives in spite of a negative equity position.

Full publication: Fiscal Policy, Public Debt and Monetary Policy in Emerging Market Economies

Keywords: Monetary policy, fiscal policy, public debt

JEL Classification: E52, E62, H6

Suggested Citation

Claro, Sebastian and Soto, Claudio, Macro Policies and Public Debt in Chile (October 1, 2012). BIS Paper No. 67g, Available at SSRN:

Sebastian Claro (Contact Author)

Pontificia Universidad Catolica de Chile ( email )

Casilla 76
Correo 17

Central Bank of Chile ( email )

Huerfanos 1185

Claudio Soto

Central Bank of Chile - Macroeconomic Analysis Unit ( email )


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