A Model of the Nominal and Real Exchange Rates in Colombia

Borradores de Economia
Número: 
129
Publicado: 
Clasificación JEL: 
F31, F41
Palabras clave: 
Nominal, real, Exchange Rate, Colombia

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Alejandro Ome, Laura Giles Álvarez, Gerson Javier Pérez-Valbuena, Cristhian Larrahondo

Using the johansens cointegration technique we develop an empirical model of the nominal and real exchange rates of Colombia. We find that the nominal exchange rate is determined by the nominal variables and the fundamentals and that the real exchange rat