The history of economic recessions has shown that every deep downturn has been accompanied by disruptions in the financial sector. Paradoxically, up until the financial world crisis of 2007-2009, little attention was given to macroeconomic and financial interdependence. And, in spite of a...

The history of economic recessions has shown that every deep downturn has been accompanied by disruptions in the ?financial sector. Paradoxically, up until the ?financial world crisis of 2007-2009, little attention was given to macroeconomic and ?financial interdependence. And, in spite of a...

En este artículo se presentan los resultados de la estimación de la demanda por base monetaria en Colombia, introduciendo la relación entre depósitos sujetos a encaje y efectivo como proxy de la variable cambio tecnológico en el sistema financiero. Se muestra que uno de los vectores de...

We estimate credit and GDP cycles for three Latin American economies and study their relation in the frequency domain. We compute coherence statistics between credit and GDP cycles and find that the highest correlations between these two cycles are obtained in medium-term frequencies. Spectral...

The price setting behavior of Colombian retailers of goods and services was studied based on a uniquedataset containing 12,052,970 individual price reports covering all items in the Colombian CPI fromMarch 1999 to May 2008. The main results are summarized as follows: 1. Colombian consumerprices...

In this paper we estimated a volatility model for COP/US under two different samples, one containing the information before the “discretional interventions” started, and the other using the whole sample. We use a nonparametric approach to estimate the mean and “volatility smile” return...

In this paper we explore the price setting behaviorof Colombian producers and importers using a unique database containing the monthly price reportsunderlying the Colombian PPI from Jun-1999 to Oct-2006. We focus on five particular questions: 1. Are prices sticky or flexible? 2. Is a price...

Typically, central banks use a variety of individual models (or a combination of models) when forecasting inflation rates. Most of these require excessive amounts of data, time, and computational power; all of which are scarce when monetary authorities meet to decide over policy interventions....

Typically, central banks use a variety of individual models (or a combination of models) when forecasting inflation rates. Most of these require excessive amounts of data, time, and computational power; all of which are scarce when monetary authorities meet to decide over policy interventions....

In this paper we survey prominent theories that have shaped the literature on sterilized foreign exchange interventions. We identify three main strands of literature: 1) that which advocates the use of sterilized interventions; 2) that which deems sterilized interventions futile; and 3) that...