Colombia: Selected Issues

Publication Date:

May 31, 2017

Electronic Access:

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Summary:

This Selected Issues paper assesses the monetary policy stance and broad financial conditions in Colombia. It uses a dynamic stochastic general equilibrium model of a small open economy to estimate the neutral rate. A financial conditions index is also constructed to assess overall financial conditions through three different transmission channels (credit, leverage, risk) of the financial sector to the state of the economy. Results reveal that both monetary policy and broad financial conditions in Colombia remained tight in 2016. The results also show that tighter financial conditions could have had a sizable impact on GDP growth.

Series:

Country Report No. 2017/139

Subject:

English

Publication Date:

May 31, 2017

ISBN/ISSN:

9781484302187/1934-7685

Stock No:

1COLEA2017002

Pages:

47

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