Estructura Administrativa Del Estado Colombiano Enrique Romero Romero
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Estructura Administrativa Del Estado Colombiano Enrique Romero Romero Letra
In this article, an open-economy optimal monetary rule is estimated for Colombia over the period 1991-2006 using the Generalized Method of Moments (GMM). The results show that in 1991-1999 the monetary authorities had two targets: one for the inflation rate and another for the exchange rate. In contrast, the exchange rate did not seem to be a concern for the monetary authorities during 2000-2006, or at least they did not use the interest rate to address such a goal.
The output gap is statistically significant in both sub-periods, but the magnitude of its coefficient is practically negligible. Suggested Citation.