IDEAS home Printed from https://ideas.repec.org/a/col/000107/003249.html

Monetary Policy in Colombia

Author

Listed:
  • Javier Guillermo Gómez

Abstract

This article is a historical account of monetary policy inColombia. Since it is an account of monetary policy in anopen economy, the emphasis is on the concepts of the“trilema” of monetary policy, nominal anchor, and monetaryregimes. In addition, the account includes the current periodof inflation targeting regime, presents the academicantecedents and the definition of inflation targeting, anddescribes the current characteristics of this regime in Co-lombia. The main policy implication is that the mostimportant requirement for maintaining price stability is forthe Banco de la República to keep the inflation target firm, and, steerinterest rates to meet the inflation objective in the face of increases ininflation caused by demand pressure, devaluation and increases in the in-flation of food prices.

Suggested Citation

  • Javier Guillermo Gómez, 2006. "Monetary Policy in Colombia," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 24(50), pages 12-47.
    • Handle: RePEc:col:000107:003249
    DOI: 10.32468/Espe.5001
    as

    Download full text from publisher

    File URL: https://doi.org/10.32468/Espe.5001
    Download Restriction: no
    File URL: https://libkey.io/10.32468/Espe.5001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mccallum, Bennet T., 1988. "Robustness properties of a rule for monetary policy," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 29(1), pages 173-203, January.
    2. Miguel Urrutia, 2002. "UNA VISI�N ALTERNATIVA: La Pol�tica Monetaria y Cambiaria en la �ltima D�cada," Borradores de Economia 3731, Banco de la Republica.
    3. Bofinger, Peter, 2001. "Monetary Policy: Goals, Institutions, Strategies, and Instruments," OUP Catalogue, Oxford University Press, number 9780199248568.
    4. Morris Goldstein, 2017. "Managed Floating Plus," World Scientific Book Chapters, in: TRADE CURRENCIES AND FINANCE, chapter 6, pages 207-239, World Scientific Publishing Co. Pte. Ltd..
    5. Frederic S Mishkin & Miguel A Savastano, 2002. "Monetary Policy Strategies For Emerging Market Countries: Lessons From Latin America," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 44(2-3), pages 45-82, September.
    6. Edwin M. Truman, 2003. "Inflation Targeting in the World Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 346, October.
    7. Lucas, Robert E, Jr, 1980. "Two Illustrations of the Quantity Theory of Money," American Economic Review, American Economic Association, vol. 70(5), pages 1005-1014, December.
    8. Barry Eichengreen, 2004. "Capital Flows and Crises," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262550598, December.
    9. Levy-Yeyati, Eduardo & Sturzenegger, Federico, 2005. "Classifying exchange rate regimes: Deeds vs. words," European Economic Review, Elsevier, vol. 49(6), pages 1603-1635, August.
    10. Laurence M. Ball & Niamh Sheridan, 2004. "Does Inflation Targeting Matter?," NBER Chapters, in: The Inflation-Targeting Debate, pages 249-276, National Bureau of Economic Research, Inc.
    11. Milton Friedman & Anna J. Schwartz, 1963. "A Monetary History of the United States, 1867–1960," NBER Books, National Bureau of Economic Research, Inc, number frie63-1, December.
    12. Corrinne Ho & Robert N. McCauley, 2003. "Living with flexible exchange rates: issues and recent experience in inflation targeting emerging market economies," BIS Working Papers 130, Bank for International Settlements.
    13. Leonardo Villar & Hernán Rincón, 2000. "The Colombian Economy in the nineties: Capital Flows and Foreign Exchange Regimes," Borradores de Economia 149, Banco de la Republica de Colombia.
    14. Kenneth N Kuttner, 2004. "A Snapshot of Inflation Targeting in its Adolescence," RBA Annual Conference Volume (Discontinued), in: Christopher Kent & Simon Guttmann (ed.),The Future of Inflation Targeting, Reserve Bank of Australia.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hern�n Rinc�n & Jorge Toro, 2010. "Are Capital Controls and Central Bank Intervention Effective?," Borradores de Economia 7622, Banco de la Republica.
    2. Javier Guillermo G�mez, 2006. "La Pol�Tica Monetaria En Colombia," Borradores de Economia 3054, Banco de la Republica.
    3. Roberto Alfonso Montenegro Robles, 2011. "La política monetaria y la brecha del producto," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 3(2), pages 41-47.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:bdr:ensayo:v::y:2006:i:50:p:12-47 is not listed on IDEAS
    2. Javier Gómez Pineda, 2006. "La Política Monetaria en Colombia," Borradores de Economia 394, Banco de la Republica de Colombia.
    3. Javier Guillermo G�mez, 2006. "La Pol�Tica Monetaria En Colombia," Borradores de Economia 3054, Banco de la Republica.
    4. Mr. Scott Roger & Mr. Mark R. Stone, 2005. "On Target? the International Experience with Achieving Inflation Targets," IMF Working Papers 2005/163, International Monetary Fund.
    5. Hanna Samaryna & Jakob de Haan, 2011. "Right on Target: Exploring the Determinants of Inflation Targeting Adoption," DNB Working Papers 321, Netherlands Central Bank, Research Department.
    6. Piersanti, Giovanni, 2012. "The Macroeconomic Theory of Exchange Rate Crises," OUP Catalogue, Oxford University Press, number 9780199653126.
    7. César Calderón & Klaus Schmidt-Hebbel, 2010. "What Drives Inflation in the World?," RBA Annual Conference Volume (Discontinued), in: Renée Fry & Callum Jones & Christopher Kent (ed.),Inflation in an Era of Relative Price Shocks, Reserve Bank of Australia.
    8. Marjan Petreski, 2009. "A Critique On Inflation Targeting," Journal Articles, Center For Economic Analyses, pages 11-24, December.
    9. Tavlas, George & Dellas, Harris & Stockman, Alan C., 2008. "The classification and performance of alternative exchange-rate systems," European Economic Review, Elsevier, vol. 52(6), pages 941-963, August.
    10. Jan Libich, 2006. "Inflexibility Of Inflation Targeting Revisited: Modeling The "Anchoring" Effect," CAMA Working Papers 2006-02, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    11. Gianni Amisano & Roberta Colavecchio, 2025. "Monetary aggregates and inflation: A new view on an old relationship," BCL working papers 195, Central Bank of Luxembourg.
    12. Marjan Petreski, 2010. "An Overhaul of a Doctrine: Has Inflation Targeting Opened a New Era in Developing-country Peggers?," FIW Working Paper series 057, FIW.
    13. Jeffrey Frankel, 2011. "A Comparison Of Product Price Targeting And Other Monetary Anchor Options, For Commodity Exporters In Latin America," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2011), pages 1-70.
    14. Catão, Luis A. V., 2011. "Comment," LSE Research Online Documents on Economics 123259, London School of Economics and Political Science, LSE Library.
    15. repec:pri:cepsud:120willard is not listed on IDEAS
    16. corrinne ho & robert n mccauley, 2004. "Living with flexible exchange rates:," International Finance 0411003, University Library of Munich, Germany.
    17. Stefan Möckel, 2024. "The macroeconomic money-nature nexus: Are growing money supplies a relevant obstacle on the way to an ecologically sustainable global economy?," PLOS Sustainability and Transformation, Public Library of Science, vol. 3(1), pages 1-29, January.
    18. Rose, Andrew K. & Mihov, Ilian, 2008. "Is Old Money Better than New? Duration and Monetary Regimes," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy, vol. 2, pages 1-24.
    19. Ball, Christopher P. & Reyes, Javier, 2008. "Inflation targeting or fear of floating in disguise? A broader perspective," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 308-326, March.
    20. Demosthenes N. Tambakis, 2007. "Fear of Floating and Social Welfare," International Journal of Central Banking, International Journal of Central Banking, vol. 3(3), pages 183-204, September.
    21. Bofinger, Peter & Mayer, Eric & Wollmershäuser, Timo, 2002. "The BMW model: Simple macroeconomics for closed and open economies a requiem for the IS/LM-AS/AD and the Mundell-Fleming model," W.E.P. - Würzburg Economic Papers 35, University of Würzburg, Department of Economics.
    22. Marko Malovic, 2007. "Exchange Rate Regimes and Monetary Policies in Emerging Markets: A Showdown for Few Theoretical Misconceptions," Economic Analysis, Institute of Economic Sciences, vol. 40(1-2), pages 17-28.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:col:000107:003249. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Espe (email available below). General contact details of provider: https://edirc.repec.org/data/brcgvco.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.