By analyzing nearly two decades of monetary policy minutes using natural language processing tools, this study shows that these documents effectively explain monetary policy decisions, insofar as they shed light on the internal balance of risks assessed by the Board of Directors. This balance is consistent and coherent with the changes adopted in the policy interest rate and, in turn, this…

Is economic activity solely responsible for increases in inflation and for deviations from the inflation target? Through the implementation of a hemispheric neural network, this paper shows that inflation expectations, supply-side changes, exchange rate volatility, price indexation, and wage dynamics are also important factors in explaining these developments.

What were the effects of the 2012 tax reform on Colombia’s labor market? This article shows that reducing taxes associated with labor hiring increased formal employment, reduced informality, and lowered the unemployment rate. These findings provide valuable input for the design of public policies in Colombia and other countries facing high levels of informality and elevated hiring costs.