Colombia: Selected Issues
May 31, 2017
Download PDF
More Formats on IMF eLibrary
Order a Print CopySummary
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.
Subject: Central bank policy rate, Corporate income tax, Financial institutions, Financial services, Housing, Housing prices, Mortgages, National accounts, Prices, Taxes
Keywords: Central bank policy rate, Corporate income tax, CR, Europe, Global, house price, Housing, Housing prices, ISCR, monetary policy stance, monetary policy tightening, monetary policy transmission mechanism, Mortgages, reaction function, reform, VAT, VAT revenue
Pages:
47
Volume:
2017
DOI:
Issue:
139
Series:
Country Report No. 2017/139
Stock No:
1COLEA2017002
ISBN:
9781484302187
ISSN:
1934-7685
