Efficient policy rule for Inflation Targeting in Colombia

Borradores de Economia
Número: 
240
Publicado: 
Clasificación JEL: 
E31
Palabras clave: 
Inflation

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In a small macroeconomic model of the Colombian economy I investigate the problem of selecting a policy rule that is consistent with inflation targeting. I spell out the characteristics of the optimal feedback and output parameters in the rule, as well as