The Rise and Perpetuation of a Moderate Inflation, Colombia 1970-1991

Number: 
50
Published: 
Classification JEL: 
E31, E52, E58
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy

Colombian inflationary experience is explained using a theoretical model that stresses two elements: the effect of shocks and the type of policy designed to respond to them. The empirical investigation uses the event-study methodology and finds that the m