sample of manufactured imports. Also, whether the foreign exchange and inflation regimes affect the degree of pass-through is … that under a floating regime there is a low degree of pass-through and the hypothesis that a low inflation environment has …

Since 1991, inflation in Colombia was reduced from 25% on average to about 6% more recently. Although this performance … is in line with a long run inflation target of 3%, some analysts ask whether the Central Bank should continue … disinflating. In this paper we present a dynamic stochastic general equilibrium model of inflation targeting for a small open …