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dc.titleInflation Targeting in Colombia, 2002-2012
dc.contributor.authorUrrutia, Miguel
dc.contributor.authorHofstetter, Marc
dc.contributor.authorHamann, Franz
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageColombia
dc.date.available2014-03-10T00:00:00
dc.date.issue2014-02-28T00:00:00
dc.description.abstractAfter decades using monetary aggregates as the main instrument of monetary policy and having different varieties of crawling peg exchange rate regimes, Colombia adopted a full-fledged inflation-targeting (IT) regime in 1999, with inflation as the nominal anchor, a floating exchange rate, and the short-term interest rate as the main instrument. This paper examines the experience of the Colombian Central Bank over the last decade, a period of consolidation and innovation of its IT strategy. The paper studies the increasing number of instruments used by the CB, including systematic foreign exchange interventions, announcements, and, sporadically, macro-prudential policies, capital controls, and changes in reserve requirements, among others. The study also examines some political economy dimensions that help explain the behavior of the CB during this period. To guide the discussion, a small-scale open-economy policy model is estimated.
dc.format.extent46
dc.identifier.doihttp://dx.doi.org/10.18235/0011624
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Inflation-Targeting-in-Colombia-2002-2012.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectMonetary Policy
dc.subjectInterest Rate
dc.subjectCapital Flow
dc.subjectInvestment
dc.subjectInflation Targeting
dc.subject.jelcodeE02 - Institutions and the Macroeconomy
dc.subject.jelcodeE32 - Business Fluctuations • Cycles
dc.subject.jelcodeE42 - Monetary Systems • Standards • Regimes • Government and the Monetary System • Payment Systems
dc.subject.jelcodeE43 - Interest Rates: Determination, Term Structure, and Effects
dc.subject.jelcodeE52 - Monetary Policy
dc.subject.jelcodeE58 - Central Banks and Their Policies
dc.subject.jelcodeF31 - Foreign Exchange
dc.subject.jelcodeF33 - International Monetary Arrangements and Institutions
dc.subject.jelcodeF42 - International Policy Coordination and Transmission
dc.subject.keywordsIDB-WP-487
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
idb.operationRG-K1198
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