Macroprudential Policies in a Commodity Exporting Economy

5 Pages Posted: 5 Oct 2016

See all articles by Andrés Gómez

Andrés Gómez

International Monetary Fund (IMF)

Franz Hamann

Central Bank of Colombia

Diego Rodríguez

Banco de la República, Colombia

Multiple version iconThere are 2 versions of this paper

Date Written: September 2016

Abstract

Colombia, like other Emerging Market economies, is a small open and commodity exporter economy. The predominant type of the commodity exported has varied, from coffee in the past century to oil in the current one. Nonetheless the importance of the commodity exporting sectors for the Colombian business cycle is prominent. In the last 40 years, empirical evidence shows a strong and positive association between the cyclical component of the real price of Colombian exports and the cyclical component of real GDP. Periods of high export prices coincide with economic booms, while periods of lower than usual prices are associated with recessions. In addition, besides contributing significantly to the GDP cycle volatility, the effects of these shocks are widespread as they affect real variables, such as consumption and investment, as well as other financial variables, such as credit.

Full publication: Macroprudential Policy

Suggested Citation

Gomez, Andres and Hamann, Franz and Rodríguez, Diego, Macroprudential Policies in a Commodity Exporting Economy (September 2016). BIS Paper No. 86k, Available at SSRN: https://ssrn.com/abstract=2844261

Andres Gomez (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Franz Hamann

Central Bank of Colombia ( email )

Carrera 7 #14-78
3551 de Bogotá
Colombia

Diego Rodríguez

Banco de la República, Colombia ( email )

Carrera 7 #14-78
3551 de Bogotá
Colombia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
25
Abstract Views
304
PlumX Metrics