Villa, Edgar; Misas, Martha A.; Giraldo, Andrés F. - In: Latin American Journal of Economics-formerly Cuadernos … 51 (2014) 1, pp. 41-83
An optimal monetary policy Taylor rule is developed for an open economy, which we then estimate following a Markov regime-switching model for quarterly data from Colombia during 1990-2011. We find two opposite monetary regimes characterized by different policy rules: until October 2000 the...