Colombia : Selected Issues

This Selected Issues paper assesses the monetary policy stance and broad financial conditions in Colombia. It uses a dynamic stochastic general equilibrium model of a small open economy to estimate the neutral rate. A financial conditions index is also constructed to assess overall financial conditi...

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Bibliographic Details
Main Authors: International Monetary Fund, Western Hemisphere Dept
Content type: Book
Published: Washington, D.C.: International Monetary Fund 2017
Series:IMF Staff Country Reports
Subjects:
Colombia
Mortgages
Prices
Taxes
Infrastructure
Banking
Housing
Macroeconomics
Finance
Banks
Online Access:Volltext
Source:E-Books
Description
Summary:This Selected Issues paper assesses the monetary policy stance and broad financial conditions in Colombia. It uses a dynamic stochastic general equilibrium model of a small open economy to estimate the neutral rate. A financial conditions index is also constructed to assess overall financial conditions through three different transmission channels (credit, leverage, risk) of the financial sector to the state of the economy. Results reveal that both monetary policy and broad financial conditions in Colombia remained tight in 2016. The results also show that tighter financial conditions could have had a sizable impact on GDP growth
Physical Description:47 pages
ISBN:9781484302187
Language: English