Output Gap in Colombia: An Eclectic Approach

Borradores de Economia
Número: 
327
Publicado: 
Palabras clave: 
Colombia, Output gap, inflation forecasting, supply shocks

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In an economy conducted under an Inflation Targeting regime, the output gap becomes one of the most important variables to guide monetary policy. Defined as the difference between observed and potential or non-inflationary output, the gap is a measure of