1. Dt is the stock of domestic credit in billions of Chilean pesos (obtained from IMF's IFS statistics) and Bt-1 is the monetary base composed of domestic credits and foreign reserves ?rt = (ht.Rt.Et-ht-1.Rt-1.Et-1)/Bt-1 where Rt is the stock of foreign reserves in billions of US dollars (IFS) and Et is the exchange rate expressed in Chilean pesos per US dollar;?dt = (ht.Dt-ht-1.Dt-1)/Bt-1 where ht is the money multiplier
2. 3.1. Consumer price index inflation
3. Aspects of the Optimal Management of Exchange Rates;J Frenkel;RXUQDOORII,QWHUQDWLRQDOO,1982