monetary policy framework in an inflation targeting regime. In all cases the Central Bank (CB) minimizes an objective function … that depends on deviations of inflation from its target, the output gap and deviations of reserve requirements from its …

The Colombian economy experienced several shocks in the past ten years. The permanent fall of inflation, the adoption … of inflation targeting (IT) and a financial crisis altered the transmission mechanism of monetary policy. Low inflation … and IT reduced inflation persistence and contributed to anchor inflation expectations. The evidence is less conclusive …

inflation targeting regime are not as straightforward as those under a monetary targeting regime. Conceptually, those effects …

(2011), gives the reader a basic introduction to understand the comparison between two monetary-policy regimes: Inflation … function (both of which incorporate partial indexation to lagged inflation), finds that for standard values of underlying …) only when the initial level of indexation to lagged inflation is higher than 60% then it is better not to switch to PLT. …

information so as to reduce economic volatility by manipulating inflation expectations. Using a standard model, this paper points … inflation announcements. Therefore, even if transparency is preferred over secrecy the central bank cannot credibly commit to …

This paper propose indicator variables for the implementation of monetary policy in an inflation targeting regime … (inflation target or a loss function). The empirical counterpart of the various formulations is shown using a DSGE model for … Colombia; a small open economy with an inflation targeting regime. …

This paper investigates the possible responses of an inflation-targeting monetary policy in the face of asset price … responds directly to asset price of housing than a policy that reacts only to deviations of expected inflation (CPI) from … target. Some prudential regulation may provide a better outcome in terms of output and inflation variability. …