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

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  • José Daniel REYES PENA

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.

Suggested Citation

  • José Daniel REYES PENA, 2003. "The cost of disinflation in Colombia: -A sacrifice Ratio Approach-," Archivos de Economía 3579, Departamento Nacional de Planeación.
    • Handle: RePEc:col:000118:003579
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    References listed on IDEAS

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    Cited by:

    1. Andrés Gonzalez & Franz Hamann, 2011. "Lack of Credibility, Inflation Persistence and Disinflation in Colombia," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, May.
    2. Bertholet Nicolás & Montes Rojas Gabriel & Toledo Fernando, 2024. "Estimación de curva de Phillips y cociente de sacrificio en Argentina. Un análisis empírico para el período 2003-2022," Asociación Argentina de Economía Política: Working Papers 4711, Asociación Argentina de Economía Política.

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