Abstract

BAQUERO BELTRAN, Amy  and  VILLAMIL, Jaime. The pandemic and economic policy: monetary policy under discussion. Rev.econ.inst. [online]. 2022, vol.24, n.46, pp.167-193.  Epub Oct 10, 2020. ISSN 0124-5996.  https://doi.org/10.18601/01245996.v24n46.09.

This paper explores the credibility of monetary policy in Colombia and its evolution after the adoption of the inflation targeting system. To do so, a non-linear Phillips curve is estimated based on unemployment for an open economy, which incorporates the direct effect of past inflation rate on price formation and a prospective component. It shows a deeper trade-off between inflation and unemployment and lower inflationary persistence. Consequently, the country could emphasize the greater responsibility of the central bank in economic growth and employment.

Keywords : Credibility, inertia, expectations, inflation, Phillips's curve; JEL: E3, E52, E58.

        · abstract in Spanish | Portuguese     · text in Spanish     · Spanish ( pdf )