Inflation Targeting in Colombia, 2002-2012

Borradores de Economia
Number: 
818
Published: 
Classification JEL: 
E02, E32, E42, E43, E52, E58, E61, F31, F33, F42
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy

After decades using monetary aggregates as the main instrument of monetary policy and having different varieties of crawling peg exchange rate regimes, Colombia adopted a full-fledged inflation-targeting (IT) regime in 1999, with inflation as the nominal