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The opinions contained in this document are the sole responsibility of the author and do not commit Banco de la República or its Board of Directors. 

The interest rate on government bonds depends on the policy interest rate set by Banco de la República for short-term, risk-free operations, on the policy rate that bond investors expect in the future, and on the risk premium they require to cover the risks of long-term operations inherent to…

This risk premium depends on several factors, one of which is the strength of the government’s finances. If investors perceive the government’s financial situation as solid, the risk premium will be lower; if, on the contrary, they perceive that the government’s debt and fiscal deficit are rising…

The interest rate on government bonds and their risk premium component have risen, while the policy interest rate has decreased or remained unchanged. Given this, the recent increase in the 10-year government bond interest rate is related to the risk premium for the risk of these bonds, due to the…

The policy interest rate influences financial market rates, thereby impacting the exchange rate, consumption, investment, and inflation expectations. When demand exceeds supply, the Bank raises the rate to control inflation, encourage saving, reduce credit, and stabilize the exchange rate.

The policy interest rate is Banco de la República’s main monetary policy instrument. The Bank raises, lowers, or maintains it with the aim of achieving the annual inflation target, which, in Colombia, has been set at 3.0% since 2010.

We study the existence and international migration of housing market bubbles, using quarterly information of twenty OECD countries for the period comprised between 1970 and 2015. We find that housing bubbles are present in all the countries included in our sample. Multiple bubbles are found in all…

Central banks generally target multiple objectives while having at least the same number of monetary instruments. However, some instruments can be inadvertently collinear, leading to indeterminacy and identification failures. Paradoxically, most empirical studies have shied away from this…

The Board of Directors has seven members: the Minister of Finance and Public Credit, the Governor of the Central Bank, and five full-time Board Members, who exclusively represent the general interest of the Nation [See: Political Constitution, Art. 372; Law 31 of 1992, Art.28; and Decree 2520 of…

The opinions contained in this document are the sole responsibility of the author and do not commit Banco de la República or its Board of Directors. 

The balance sheet is a snapshot that portraits the financial position of a firm at a specific point of time. Under the reasonable assumption that the financial position of a firm is unique and representative, we use a basic artificial neural network pattern recognition method on Colombian banks’…

The opinions contained in this document are the sole responsibility of the author and do not commit Banco de la República or its Board of Directors. 

Is the failure of natural resource abundance to achieve better economic outcomes due to limited nancial development or scal policy short-termism? I answer this question in a precautionary savings model where both resource revenues and asset returns are uncertain. Calibrating for Colombia, I nd…

Because the gap between observed inflation and the target is higher in Colombia than in other countries in the region.Because the gap between inflation expectations and the target is higher in Colombia than in other countries in the region.Once inflation gets to a low and stable level, the policy…

Why justice is unresponsive to crime: Why justice is un responsive to crime: The case of cocine in Colombia

Imagine a country whose inflation rate has recently surpassed 300% a year, and during some months even surpassed the 50% level that was estabilished as a benchmark for the definition of Phillip Cagan's classic study on the subject. This rapid inflation led to a devaluation of the local currency of…

On October 23, the awards ceremony for the 15th National Academic Economics Competition (CANE in Spanish) took place. This academic initiative, organized by the Student Council of the School of Economics at Universidad del Rosario, aims to promote academic exchange and enhance economic knowledge…

By the end of the 1990s, inefficiency, excess supply and low service quality characterized the mass transit system of Bogotá. The average travel time to work was one hour and ten minutes, obsolete buses provided public transport, traffic generated 70 percent of air pollution and there were frequent…

The impact of the COVID-19 pandemic on mental health underscores the need for early intervention strategies, especially for vulnerable groups such as young people, the elderly, and women, to mitigate the increase in mental and behavioral disorders in Colombia.

Access to formal credit has a positive relationship with the growth and formalization of microbusinesses. Those led by women are associated with higher probabilities of formalization and better growth indicators when accessing formal credit, compared to those led by men.

Gender gaps in academic performance limit educational and professional opportunities for women, perpetuating social and economic inequalities. It is crucial to implement inclusive and targeted public policies that reduce these disparities and promote greater opportunities for women in the future.

The findings show that the output gap in Colombia fell by 20% in the second quarter of 2020 due to the pandemic, but it recovered quickly, unlike previous crises.

AbstractWe estimate the effects of annual temperature and precipitation on rice yields in Colombia from 1987 to 2016. The analysis explores the degree of variation in response to climate changes across the country’s diverse topography. Since there are two growing seasons in Colombia, the effects of…