Política monetaria contractiva en el control de la inflación: caso de estudio de las principales ciudades de Colombia

Contractionary monetary policy in inflation control: A case study of Colombia's major cities

Nicolás Torres, Juan-Pablo Villarraga, Wendy Sánchez and Sebastián Upegui

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyzes the effects of a contractionary monetary policy on the Consumer Price Index (CPI) in Colombia and its 13 main cities between January 2001 and February 2020. For this purpose, Vector Autoregression models (VAR) are used, from which impulse-response functions are obtained. Among the results, it is found that, in the face of a shock, the CPI in most cities begins to fall strongly between months 19 and 20, and loses statistical significance in general in months 23 and 24. Likewise, the CPI of Manizales and Villavicencio has a higher reaction speed in the face of an innovation in interest rates, which could suggest that the credibility of the Central Bank differs between cities.

Keywords: inflation; contractionary monetary policy; shocks (search for similar items in EconPapers)
JEL-codes: E43 E58 E63 N16 (search for similar items in EconPapers)
Date: 2023, Revised 2023
New Economics Papers: this item is included in nep-mac
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Published in Revista Fenadeco 1.14(2023): pp. 79-94

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:121192

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