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The cost of disinflation in Colombia: -A sacrifice Ratio Approach-

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Author Info
José Daniel REYES PEÑA ()

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Abstract

The disinflation episode that Colombia has experienced since 1991 has been costly in terms of the output and employment. This paper computes the sacrifice ratio not only for this period but also for each disinflation episode in the Colombian economy since 1957. In order to accomplish the objective mentioned above, a range of methodologies are used to compare the sacrifice ratio estimated for each episode. The results show that the current disinflation episode appears to be not as costly as the previous one, however an explanation of why the sacrifice ratio of the current episode should be calculated since 1997 is proposed.

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Publisher Info
Paper provided by DEPARTAMENTO NACIONAL DE PLANEACIÓN in its series ARCHIVOS DE ECONOMÍA with number 003579.

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Length: 28
Date of creation: 13 Nov 2003
Date of revision:
Handle: RePEc:col:000118:003579

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