The effects of U.S. monetary policy on Colombia and Panama (2002–2007)

Nicolas Cachanosky

The Quarterly Review of Economics and Finance, 2014, vol. 54, issue 3, 428-436

Abstract: I study the economies of Colombia (floating exchange rate) and Panama (dollarized) to illustrate how the monetary policy of a large economy can export capital structure distortions to small open economies that follow different exchange rate regimes. The paper contributes to the literature on international business cycles in two ways. First, it adds to recent research that extends the Mises–Hayek business cycle theory to an international context. Second, most current research abstracts from effects on the production structures of emerging market economies when analyzing the transmission of monetary policy shocks. This paper seeks to fill this gap by studying structural effects of U.S. monetary policy on the economies of Colombia (floating exchange rate) and Panama (dollarized).

Keywords: International business cycles; Monetary policy; Latin America; Foreign exchange rate (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:54:y:2014:i:3:p:428-436

DOI: 10.1016/j.qref.2014.03.003

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