Monetary and Exchange Rate Policies in Colombia: Progress and Challenges
IMF Working Papers, September 1, 2004
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- Canonical URL
- Monetary and Exchange Rate Policies in Colombia: Progress and Challenges
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Bibliographic details
- Authors: Sergio Clavijo
- Published: September 1, 2004
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451858136.001
Overview and scope
- Focus: monetary and exchange rate policies in Colombia, with particular emphasis on the period 1999-2002, when flotation of the peso and inflation targeting were adopted.
- Author: Sergio Clavijo
- Date of publication: September 1, 2004
- Series: Working Paper No. 2004/166
- Pages: 28
- Volume: 2004
- Issue: 166
- DOI: https://doi.org/10.5089/9781451858136.001
- Stock No: WPIEA1662004
- ISBN: 9781451858136
- ISSN: 1018-5941
Key findings and analysis
- Policy framework evolution:
- Emphasis on the period 1999-2002 when the peso was floated and inflation targeting was adopted.
- Monetary policy recommendations and assessments:
- Argues in favor of adopting "operational inflation target ranges".
- Argues in favor of strengthening the current scheme of foreign exchange options.
- Assesses the impact of reductions in the reference rates of the Central Bank of Colombia.
- Transmission mechanism insight:
- Finds that a lower central bank policy interest rate is likely to affect demand only if mortgage refinancing takes place.
- Rules-based policy analysis:
- Presents preliminary estimates of Taylor rules in an open-economy framework for Colombia.
Subjects and keywords (as listed)
- Subjects: Banking, Financial services, Inflation, Inflation targeting, Monetary aggregates, Monetary policy, Money, Prices, Real interest rates, Repo rates
- Keywords: aggregate demand, BR mandate, central bank reaction, Colombia, discount window, exchange rate, Exchange rate policies, Fed model, Global, Inflation, Inflation targeting, Monetary aggregates, Monetary policies, monetary policy rule, New York Fed chairman, open economy, output gap, reaction function, Real interest rates, Repo rates, Southeast Asia, transmission mechanism, WP
IMF Working Paper: Sergio Clavijo, "Monetary and Exchange Rate Policies in Colombia: Progress and Challenges", Working Paper No. 2004/166, September 1, 2004.