Modelling official and parallel exchange rates in Colombia under alternative regimes: A non-linear approach

Costas Milas, Jesús Otero

Resultado de la investigación: Contribución a una revistaArtículorevisión exhaustiva

4 Citas (Scopus)

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 originalInglés estadounidense
Páginas (desde-hasta)165-179
Número de páginas15
PublicaciónEconomic Modelling
Volumen20
N.º1
DOI
EstadoPublicada - ene 2003

All Science Journal Classification (ASJC) codes

  • Economía y econometría

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