Uncovering the Portfolio Balance Channel with the use of Sovereign Credit Ratings

Número: 
941
Publicado: 
Clasificación JEL: 
C58, E44, G11, G14
Palabras clave: 
Portfolio Balance Channel, Sovereign Credit Rating, Uncovered Interest Rate Parity, Monetary Trilemma

Lo más reciente

Andrea Sofía Otero-Cortés, Karina Acosta, Luis E. Arango, Danilo Aristizábal, Oscar Iván Ávila-Montealegre, Oscar Becerra, Cristina Fernández, Luz Adriana Flórez, Luis Armando Galvis-Aponte, Anderson Grajales, Catalina Granda, Franz Alonso Hamann-Salcedo, Juliana Jaramillo-Echeverri, Carlos Medina, Jesús Enrique Morales-Piñero, Alejandra Morales, Leonardo Fabio Morales, Juan José Ospina-Tejeiro, Christian Manuel Posso-Suárez, José Pulido, Mario Andrés Ramos-Veloza, Alejandro Sarasti-Sierra
Ana María Iregui-Bohórquez, Ligia Alba Melo-Becerra, María Teresa Ramírez-Giraldo, Jorge Leonardo Rodríguez-Arenas

In this paper we study exchange rate effects due to shifts in the portfolio composition of the Colombian financial sector during 2003-2014. We first provide a theoretical understanding of the channel's transmission mechanism by modeling how the banking