Heterogeneity in Monetary Transmission: Sectoral and Regional Effects

Different studies have analyzed monetary transmission in Chile, and the effects of monetary policy on aggregate macroeconomic variables. However, valuable information, relevant for the design and management of monetary policy, can be obtained in a more specific analysis of the impact of monetary shocks on the components of aggregate activity. Thus, this paper studies the disaggregate effects of monetary policy, distinguishing among three different classifications: private spending (consumption and investment), economic sectors and regional unemployment. The paper finds significant differences in the disaggregate impact (both in size and length) of monetary shocks. In most cases, these differences are consistent with the theoretical implications of traditional monetary transmission channels.