Determinants of the Exchange Rate in Colombia under Inflation Targeting

Borradores de Economia
Número: 
635
Publicado: 
Clasificación JEL: 
C32, C53, E58, F31
Palabras clave: 
Exchange rate determination, Inflation Targeting, Out of sample performance, Johansen multivariate cointegration.

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This research studies the forecasting performance of conventional and more recent exchange rate models in Colombia. The purpose is to explain which have been the main exchange rate determinants under an Inflation Targeting regime and a completely floating