Commodity price shocks and inflation within an optimal monetary policy framework : the case of Colombia

Número: 
858
Publicado: 
Clasificación JEL: 
E43, E58
Palabras clave: 
Commodity Prices, Inflation-targeting Regime, Optimal Monetary Policy, Expectations

A small open macroeconomic model, in which an optimal interest rate rule emerges to drive the inflation behavior, is used to model inflation within an inflation targeting framework. This set up is used to estimate the relationship between commodity prices