In this paper we explore the price setting behavior of Colombian producers and importersusing a unique database containing the monthly price reports underlying the ColombianPPI from Jun-1999 to Oct-2006. We focus on five particular questions: 1. Are pricessticky or flexible? 2. Is a price...

This paper presents a dynamic stochastic general equilibrium model of inflation targeting in small open economy. We calibrate the model to the Colombian economy and present the response of some macroeconomic variables to different types of shocks that are relevant for emerging economies. We also...

Most of the proposed macro models and Phillips curves for policy design and analysis in Colombia depend on estimates of the potential output. However, it is widely known that this estimates are highly unreliable because of its level of estimation uncertainty. Following Staiger et al.(1996), we...

En este trabajo se hace una evaluación de la efectividad de la intervención discrecional utilizando una base de datos única que contiene información de alta frecuencia sobre el comportamiento intradía de la tasa de cambio, y de la intervención del Banco de la República. Se estima un...

En este trabajo se cuantifica el contenido informativo de los Índices de Confianza utilizados por el Banco de la República en la elaboración de su Informe sobre Inflación. Se estudian las frecuencias a las que ocurren sus variaciones y se comparan con las frecuencias de medidas similares de...

Preliminary and delayed Colombian GDP reports are replaced with optimal in-sample now-casts of true" GDP figures derived from a model for data revisions. The new GDP time series is augmented with optimal out-of-sample forecasts and back-casts of the "true" GDP figures derived from the same...