dc.creator Ballesteros, Alexander
dc.description.abstract This paper estimates Bejarano and Charry (2014)’s small open economy with financial frictions model for the Colombian economy using Bayesian estimation techniques. Additionally, I compute the welfare gains of implementing an optimal response to credit spreads into an augmented Taylor rule. The main result is that a reaction to credit spreads does not imply significant welfare gains unless the economic disturbances increases its volatility, like the disruption implied by a financial crisis. Otherwise its impact over the macroeconomic variables is null.
dc.subject Optimal Monetary Policy
dc.subject Credit Spreads
dc.subject Bayesian Estimation
dc.subject.lemb Apertura económica
dc.subject.lemb Economía::Colombia
dc.title Credit spreads and monetary policy in a small open economy: an analysis of the colombian economy
dc.subject.keyword Optimal Monetary Policy
dc.subject.keyword Credit Spreads
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