Monetary Policy and the Balance of Payments in Brazil and Chile: Reply
研究巴西和智利这两个小型开放经济体的国际收支如何影响央行控制货币供给的能力，通过模型检验国内货币基础变动是否被国际收支失衡抵消，以及央行是否冲销这种影响。
In this paper we examine the degree to which the balance of payments of two small, relatively open economies influences the ability of their monetary authorities to control the money supply. More specifically we investigate to what extent variations in the domestic component of the monetary base are offset vla international payments imbalances, and then to what extent the authorities sterilize the effects of payments imbalances on the monetary base. The method is Elrst to build a simple model that incorporates the monetary approach [12] to the balance of payments and contains an assumed central bank behavioral equation. Then this is tested with yearly data for Brazil and Chile. The approach attempts to take account of the simultaneity between (a) changes in the international and domestic components of the monetary base and (b) the level of income and the monetary base. This is done vla the use of reduced-form solutions and two-stageleast-squares regressions. The relevant literature has four parts. First, there is that body of literature surrounding the seminal work of Mundell [15], which concludes that a small highly open economy may have difficulty in controlling its money supply with Elxed exchange rates. Any monetary expansion will lead to a decline in the international component of the monetary base primarily via capital flows and the current account.