Resumen
We examine the long-run relationship between the parallel and the official exchange rate in Colombia over two regimes; a crawling peg period and a more flexible crawling band one. The short-run adjustment process of the parallel rate is examined both in a linear and a non-linear context. We find that the change from the crawling peg to the crawling band regime did not affect the long-run relationship between the official and parallel exchange rates, but altered the short-run dynamics. Non-linear adjustment seems appropriate for the first period, mainly due to strict foreign controls that cause distortions in the transition back to equilibrium once disequilibrium occurs.
Idioma original | Inglés estadounidense |
---|---|
Páginas (desde-hasta) | 165-179 |
Número de páginas | 15 |
Publicación | Economic Modelling |
Volumen | 20 |
N.º | 1 |
DOI | |
Estado | Publicada - ene. 2003 |
Áreas temáticas de ASJC Scopus
- Economía y econometría