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Credit bubble and stagnation in Colombia, 1990-2001

Author

Listed:
  • Fernando Tenjo
  • Enrique Lopez

    (Banco de la Republica
    Banco de la Republica)

Abstract

This paper explores the dynamics of the credit-crunch affecting Colombia during the second half of the 1990s. Its main objectives are to present statistical evidence regarding the phenomenon in question, to ascertain rhythms deriving from it and some working hypotheses shedding some light on determinants of Colombian credit market behaviour. The study distinguishes between exogenous and endogenous factors explaining this behaviour. External capital flows play a key role in the former as their size and direction highly influence internal credit conditions and economic activity. However, changes in these flows are channelled through a domestic financial system that amplifies their negative effect on the economy, thus playing a procedural-cyclical role

Suggested Citation

  • Fernando Tenjo & Enrique Lopez, 2003. "Credit bubble and stagnation in Colombia, 1990-2001," Colombian Economic Journal, Academia Colombiana de Ciencias Economicas, Colegio Mayor de Nuestra Senora del Rosario, Pontificia Universidad Javeriana, Universidad de Antioquia, Universidad de los Andes, Universidad del Valle, Universidad Externado de Colombia, Universidad Nacional de Colombia, vol. 1(1), pages 151-191, December.
    • Handle: RePEc:cej:primer:v:1:y:2003:i:1:p:151-191
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    File URL: http://www.fce.unal.edu.co/cej/number1/6-Tenjo.pdf
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    Cited by:

    1. Sergio Clavijo & Michel Janna & Santiago Munoz, 2005. "El mercado colombiano de la vivienda: factores socioeconómicos y financieros determinantes," Research Department Publications 4390, Inter-American Development Bank, Research Department.
    2. Sergio Clavijo & Michel Janna & Santiago Munoz, 2005. "The Housing Market in Colombia: Socioeconomic and Financial Determinants," Research Department Publications 4389, Inter-American Development Bank, Research Department.
    3. Boris Branisa & Adriana Cardozo, 2009. "Revisiting the Regional Growth Convergence Debate in Colombia Using Income Indicators," Ibero America Institute for Econ. Research (IAI) Discussion Papers 194, Ibero-America Institute for Economic Research, revised 21 Aug 2009.

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    More about this item

    Keywords

    credit markets; credit cycle; financial structure; flow of funds;
    All these keywords.

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • G1 - Financial Economics - - General Financial Markets
    • G3 - Financial Economics - - Corporate Finance and Governance

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