The Great Depression stopped the economic expansion that the Colombian economy experienced in the 1920s. The collapse of the world economy was transmitted to the country's financial system through two mechanisms: the dramatic reduction in the prices of coffee, the main export, and the sudden...

In response to the 2008-2009 crisis, faced with distressed financial intermediaries, the ECB embarked in longer-term refinancing operations (LTROs) with full allotment. Using an estimated DSGE model with a frictional banking sector, we find that such liquidity injections have played a key role...