Uncovering the Portfolio Balance Channel with the use of Sovereign Credit Ratings

Borradores de Economia
Number: 
941
Published: 
Classification JEL: 
C58, E44, G11, G14
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy
Download document

The most recent

Impact of demographic change on CO₂ emissions: the role of consumption
Jhorland Ayala-García, Jaime Bonet-Morón, Eduardo A. Haddad, Inácio F. Araújo
Remittances, growth and regional economic convergence: evidence from Colombian departments
Clark Granger, Jhorland Ayala-García, Fabio Montenegro Aparicio
Adaptation to Broken Mitigation: Social and Economic Impacts of Solar Mini-Grid Electrification in Colombian Island
Hans-Erik Edsand, Andrés Aleán-Romero, Jhorland Ayala-García, Tania Jiménez Castilla, Sandra C. Valencia

In this paper we study exchange rate effects due to shifts in the portfolio composition of the Colombian financial sector during 2003-2014. We first provide a theoretical understanding of the channel's transmission mechanism by modeling how the banking