Over the last quarter of a century, inflation targeting has become a popular monetary regime. Nevertheless, empirical evaluations of IT have shown contradictory results. Part of the reason is that IT in and of itself constitutes an endogenous decision and thus needs to be properly instrumented....

type="main" xml:lang="en" <title type="main">Abstract</title> <p>Proponents of inflation targeting (IT) claim that it increases the credibility of central banks, which in turn should result in smaller sacrifice ratios (SRs) – that is, the ratio of output losses to the change in trend inflation during disinflations. We show...</p>

In 1999 the Colombian Constitutional Court ruled that annual minimum wage increases should not be lower than the inflation of the previous year. This article explores the impact of this decision on the effectiveness of monetary policy, and shows that the obligation to adjust the salary to past...

Este documento explora algunos aspectos del mercado laboral urbano durante el último cuarto de siglo en Colombia. El artículo trata de identificar aspectos novedosos a través de datos que habían sido poco explotados anteriormente. El objetivo del artículo es abrir preguntas de...

Abstract After decades using monetary aggregates as the main instrument of monetary policy and having different varieties of crawling peg exchange rate regimes, Colombia adopted a full-fledged inflation-targeting (IT) regime in 1999, with inflation as the nominal anchor, a floating exchange...

JEL Cl This study constructs a new data set on unemployment rates in Latin America and the Caribbean and then explores the determinants of unemployment. We compare different countries, finding that unemployment is influenced by the size of the rural population and that the effects of government...

We estimate the causal effects of a shift in the future expected exchange rate of a local currency against the US dollar on a representative sample of firms in a small open economy. We survey a nationally representative sample of firms and provide the one-year-ahead nominal exchange rate...