Institutional Aspects of the Central Bank in Colombia (1963-2007)

Abstract

This article makes an institutional comparison of the functioning of the Bank of the Republic under the two regimes that have been in charge of monetary policy in Colombia: the Monetary Board and the Directive Board. It finds that even though there is evidence of a negative correlation between inflation and independence, the relationship is not necessarily causal. Moreover, a statistical analysis of macroeconomic performance under the two regimes is carried out, emphasizing the importance of institutional structure in the search for a better monetary policy.

Note: Downloadable document is in Spanish.

Keywords: institutions, central bank, monetary policy

JEL Classification: E52, E58, G28, N46