Ítem
Acceso Abierto
Modelling official and parallel exchange rates in Colombia under alternative regimes: a non-linear approach
Título de la revista
Autores
Milas, Costas
Otero Cardona, Jesús Gilberto
Archivos
Fecha
2000-02
Directores
ISSN de la revista
Título del volumen
Editor
Universidad del Rosario
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Métricas alternativas
Resumen
Abstract
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 nonlinear 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
Palabras clave
Keywords
Parallel market , Cointegration , Non-linear error correction models , Colombia
