IDEAS home Printed from https://ideas.repec.org/a/lde/journl/y2025i104p147-181.html

Supply Shocks and Monetary Policy: The Case of the Colombian Economy (2003-2023)

Author

Listed:
  • Carlos David Alape Gamez

    (Universidad de los Andes)

Abstract

This article aims to analyze the effects of a negative supply shock on expected inflation, the intervention rate, and gross domestic product during the period 2003 to 2023 in Colombia. A vector autoregressive multivariate time series model is employed as an empirical approach. The research indicates that after a negative supply shock, there is a misalignment in the formation of economic expectations, leading to an increase in the monetary policy rate. This, in turn, has a detrimental impact on the evolution of the gross domestic product, while failing to effectively anchor the expectations of economic agents.

Suggested Citation

  • Carlos David Alape Gamez, 2025. "Supply Shocks and Monetary Policy: The Case of the Colombian Economy (2003-2023)," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 104, pages 147-181, November.
    • Handle: RePEc:lde:journl:y:2025:i:104:p:147-181
    DOI: 10.17533/udea.le.n104a357639
    as

    Download full text from publisher

    File URL: https://revistas.udea.edu.co/index.php/lecturasdeeconomia/article/view/357639
    File Function: Abstract
    Download Restriction: no
    File URL: https://revistas.udea.edu.co/index.php/lecturasdeeconomia/article/download/357639/20820189
    File Function: Main text
    Download Restriction: no
    File URL: https://libkey.io/10.17533/udea.le.n104a357639?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
    ---><---

    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
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

    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:lde:journl:y:2025:i:104:p:147-181. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Carlos Andrés Vasco Correa (email available below). General contact details of provider: https://edirc.repec.org/data/deantco.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.