[PDF] Inflation In Colombia eBook

Author : Mr.Sergi Lanau
Publisher : International Monetary Fund
Page : 29 pages
File Size : 43,3 MB
Release : 2018-05-10
Category : Business & Economics
ISBN : 1484356314

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We study inflation dynamics in Colombia using a bottom-up Phillips curve approach. This allows us to capture the different drivers of individual inflation components. We find that the Phillips curve is relatively flat in Colombia but steeper than recent estimates for the U.S. Supply side shocks play an important role for tradable and food prices, while indexation dynamics are important for non-tradable goods. We show that besides allowing for a more detailed understanding of inflation drivers, the bottom-up approach also improves on an aggregate Phillips curve in terms of forecasting ability. In the baseline forecast scenario, both headline and core inflation converge towards the Central Bank’s inflation target of 3 percent by end-2018 but these favorable inflation dynamics are vulnerable to large supply shocks.

Author : Henry Ma
Publisher : International Monetary Fund
Page : 38 pages
File Size : 50,67 MB
Release : 1998-11
Category : Business & Economics
ISBN :

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Between 1955 and 1972, inflation in Colombia was relatively low. Since 1973, however, Colombia has experienced inflation averaging 18-22 percent (see Figure 1), making it the moderate-inflation country par excellence (Dornbusch and Fischer, 1993).2 Yet, Colombia has also been known for its prudent macroeconomic policies, to which have been attributed its record of sustained economic growth and manageable external debt, in contrast to the experience of other Latin American countries. Fiscal deficits were kept low (before widening somewhat in the 1990s), while monetary authorities have kept an eye toward an alarm signal of 30 percent inflation: When inflation exceeds that level (as in 1977 and 1990), monetary policy counteracts it (Echeverry, 1996).

Author : International Monetary
Publisher : International Monetary Fund
Page : 25 pages
File Size : 48,35 MB
Release : 2023-03-23
Category : Business & Economics
ISBN :

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Colombia: Selected Issues

Author : Mr.Alberto Carrasquilla
Publisher : International Monetary Fund
Page : 40 pages
File Size : 45,8 MB
Release : 1995-04-01
Category : Business & Economics
ISBN : 1451846185

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After 25 years, the Colombian authorities decided to abandon the crawling peg exchange rate policy and implement a regime of nominal exchange rate bands. Initial conditions in Colombia contrast sharply with those of other cases in which bands were part of an ongoing effort to reduce high inflation. This paper argues that the change in regime was motivated by a change in policy objectives. Starting from a policy whose rationale implied targeting stable inflation, a simple analytical model of optimal policy is presented; initial results with the new regime suggest that inflation is now considered costlier and that policy implementation has been consistent with this new view.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 141 pages
File Size : 38,56 MB
Release : 2001-05-03
Category : Business & Economics
ISBN : 1451808836

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This Selected Issues paper provides background information and analysis on recent developments and critical issues for the Colombian economy. The study discusses the unemployment and stresses in the financial system and also focuses on fiscal issues. The following statistical data are presented in detail: national accounts at current prices and at constant prices, savings and investment, value of agricultural crops, mining production, structure of regular gasoline prices, indicators of construction activity, minimum wages, producer price index, interest rates, and so on.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 39 pages
File Size : 41,82 MB
Release : 2010-05-04
Category : Business & Economics
ISBN : 1455202657

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This Selected Issues paper on Colombia shows that achieving investment grade status would help lower financing costs for the sovereign, and expand the pool of potential buyers of the Colombian economy. Colombia’s debt levels as of end-2008 were broadly similar to the average for investment grade emerging markets, suggesting that other indicators are taken into account in rating agencies’ assessments. A stronger process of fiscal consolidation that results in a significant decline in public sector debt could help compensate the structural weaknesses.