Arenas, Fernando, "An Adaptive Expectations Approach to the Mechanisms of Transmission Model of the Central Bank of Colombia", 2005 July 17-2005 July 21
An Adaptive Expectations Approach to the Mechanisms of Transmission Model of the Central Bank of Colombia
Fernando Arenas Pontificia Universidad Javeriana
Franz Hamann Banco de la República
ABSTRACT
Looking for the potential applications of system dynamics in macroeconomic modeling at the Central Bank of Colombia, the Mechanisms of Transmission Model (MTM) was recast in a system dynamics model. The forward-looking function of the model that, in the case of the MTM is a rational expectations based function, was approached by means of the TREND function. This document describes the system dynamics model and shows comparative impulse-response results between the models, when PULSE and STEP shocks are applied to inflation target, monetary policy, food supply, nominal depreciation rate, and risk premium.
This is the whole item.
Date created |
- 2005 July 17-2005 July 21
|
Type |
|
Processing Activity |
|
License |
|