We study inflation dynamics in Colombia using a bottom-up Phillips curve approach. Thisallows us to capture the … different drivers of individual inflation components. We find that thePhillips curve is relatively flat in Colombia but steeper … indexationdynamics are important for non-tradable goods. We show that besides allowing for a moredetailed understanding of inflation …

proportionally to inflation. We show that conditions under which these rules generate aggregate instability by inducing liquidity … that respond to expected future inflation are more prone to induce endogenous cyclical and chaotic dynamics the more open …

times. An inflation shock only slightly reduces the debt ratio for a few quarters. A positive growth shock unambiguously …

This paper quantitatively assesses the effects of inflation shocks on the public debt-to-GDP ratio in 19 advanced … impulse responses by local projections both suggest that a 1 percentage point shock to inflation rate reduces the debt … higher inflation, even if accompanied by some financial repression, could reduce public debt burden only marginally in many …

We show that the presence of nominal non-indexed government debt could give rise to more than one equilibrium inflation …

This paper investigates the impact of low or high inflation on the public debt-to-GDP ratio in the G-7 countries. Our … simulations suggest that if inflation were to fall to zero for five years, the average net debt-to-GDP ratio would increase by … about 5 percentage points over the next five years. In contrast, raising inflation to 6 percent for the next five years …

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 …

This paper focuses on monetary and exchange rate policies in Colombia, with particular emphasis on the period 1999 …-2002, when flotation of the peso and inflation targeting were adopted. We argue, first, in favor of adopting quot …;operational inflation target rangesquot; and, second, in favor of strengthening the current scheme of foreign exchange options. The impact …