Disinflation Costs Under Inflation Targeting in Small Open Economy

Borradores de Economia
Número: 
328
Publicado: 
Clasificación JEL: 
E31, E32, E52, F41
Palabras clave: 
Small open economy, Inflation Targeting, Compensation, Colombia

Lo más reciente

Andrés Nicolás Herrera-Rojas, David Camilo López-Valenzuela, Juan José Ospina-Tejeiro, Jesús Antonio Bejarano-Rojas
Jaime Alfredo Bonet-Moron, Yuri Carolina Reina-Aranza, Adriana Ortega, Ana Rosa Polanco

Since 1991, inflation in Colombia was reduced from 25% on average to about 6% more recently. Although this performance is in line with a long run inflation target of 3%, some analysts ask whether the Central Bank should continue disinflating. In this pa