The Covid-19 shock and the monetary policy response in Colombia


  • This paper analyses some of the challenges posed by the Covid-19 shock in Colombia, describes the monetary policy response and discusses the effects on the fiscal position. Evidence is presented for non-linear responses of EME risk premia (CDS) to their determinants, depending on the public debt-to-GDP ratio and the distribution of the risk premium. These findings are introduced in a DSGE model that includes the fiscal sector for Colombia (COFFEE model) to illustrate how increasing public debt levels may constrain monetary policy through a higher sovereign risk premium and a
    higher responsiveness of the latter to shocks affecting its fundamentals.

fecha de publicación

  • 2022


  • Bank for International Settlements

Líneas de investigación

  • Covid-19 shock
  • analysis of fiscal and monetary policy
  • sovereign risk prices

Página inicial

  • 79

Última página

  • 114