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

Luis E. Arango, Leonardo Bonilla-Mejía, Luz Adriana Flórez, Luis E. Arango
Julián Andrés Parra-Polanía, Constanza Martínez-Ventura

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