Cookies?
Library Header Image
LSE Research Online LSE Library Services

Monetary policy and exchange rate in a structural VAR for a small open economy

Gómez-Cardona, Sebastián (2014) Monetary policy and exchange rate in a structural VAR for a small open economy. Desarrollo y Sociedad, 73. pp. 151-178. ISSN 0120-3584

Full text not available from this repository.
Identification Number: 10.13043/DYS.73.5

Abstract

The impact of the monetary policy on the exchange rate and other macroeconomic variables is analyzed for the case of Colombia, a small open economy. Block exogeneity restrictions are imposed in a novel way in a structural VAR, including local and foreign variables. The results are robust to various specifications and show a partial solution of the forward discount bias puzzle, i.e. partial evidence of the uncovered interest parity (UIP). This was not the case in previous research with the same methodology for Colombia. It also finds strong evidence in favor of the central bank leaning against the wind and partial evidence of no pass through from exchange rate to inflation.

Item Type: Article
Official URL: http://economia.uniandes.edu.co/en/research_and_pu...
Additional Information: © 2014 Universidad de los Andes, Facultad de Economia
Divisions: LSE
Subjects: H Social Sciences > HB Economic Theory
Date Deposited: 08 Aug 2014 13:21
Last Modified: 20 Mar 2019 02:28
URI: http://eprints.lse.ac.uk/id/eprint/58698

Actions (login required)

View Item View Item