Search Results

You are looking at 1 - 6 of 6 items for :

  • "commodity exporters' emerging economies" x
Clear All
International Monetary Fund. Western Hemisphere Dept.

prices and incomes change . This chapter compares the macroeconomic adjustment in Chile, Colombia, and Peru in response to fluctuations in commodity prices. This comparison is relevant as these are commodity exportersemerging economies (mainly copper for Chile and Peru, and oil for Colombia) that are comparable in size and have sound macroeconomic frameworks in place, including fiscal rules and inflation-targeting regimes. 3. First, macroeconomic responses to a commodity ToT shock are estimated . Using a vector auto-regression methodology (VAR), the implications of

Mr. Francisco Roch
This paper presents a comparative analysis of the macroeconomic adjustment in Chile, Colombia, and Peru to commodity terms-of-trade shocks. The study is done in two steps: (i) an analysis of the impulse responses of key macroeconomic variables to terms-of-trade shocks and (ii) an event study of the adjustment to the recent decline in commodity prices. The experiences of these countries highlight the importance of flexible exchange rates to help with the adjustment to lower commodity prices, and staying vigilant in addressing depreciation pressures on inflation through tightening monetary policies. On the fiscal front, evidence shows that greater fiscal space, like in Chile and Peru, gives more room for accommodating terms-of-trade shocks.
International Monetary Fund. Western Hemisphere Dept.
This Selected Issues paper presents a comparative analysis of the macroeconomic adjustment in Chile, Colombia, and Peru to commodity terms-of-trade shocks. The study is done in two steps: (1) an analysis of the impulse responses of key macroeconomic variables to terms-of-trade shocks and (2) an event study of the adjustment to the recent decline in commodity prices. The experiences of these countries highlight the importance of flexible exchange rates to help with the adjustment to lower commodity prices, and staying vigilant in addressing depreciation pressures on inflation through tightening monetary policies. On the fiscal front, evidence shows that greater fiscal space, like that of Chile and Peru, gives more room for accommodating terms-of-trade shocks.
International Monetary Fund. Western Hemisphere Dept.
This paper discusses key issues related to the Colombian economy. Despite adverse global circumstances, Colombia’s successful policies and inclusive growth agenda continued in 2015. Colombia’s strong policy framework helped ensure an orderly adjustment to the deteriorated external conditions. Although the medium-term outlook is favorable, it is surrounded by downside risks. The main near-term risks stem from Colombia’s still significant near-term external financing needs and potential capital inflow reversals, the result of volatile global financial conditions. On the upside, bringing the peace process to fruition could further improve business confidence and capital inflows, reinforcing the recovery that will follow the necessary adjustment process.
Mr. Francisco Roch

, the prices of metals and oil declined after 2011 and mid-2014, respectively. Through deteriorating ToT, the shock resulted in lower national incomes, wider current account deficits, and weaker national currencies. Large ToT movements can have important implications for macroeconomic performance as relative prices and incomes change. This paper compares the macroeconomic adjustment in Chile, Colombia, and Peru in response to fluctuations in commodity prices. This comparison is relevant as these are commodity exportersemerging economies (mainly copper for Chile

International Monetary Fund. Western Hemisphere Dept.

. This comparison is relevant as these are commodity exportersemerging economies (copper for Chile and Peru, and oil for Colombia), which are comparable in size and feature sound macroeconomic frameworks (with both fiscal rules and inflation-targeting regimes in place). Moreover, given that the adjustment started earlier in Chile and Peru, this analysis could inform about the expected response in Colombia. A. The impact of the shock in Colombia Impact of Oil Shock 2013 2014 2015 2016 (proj.) Oil-related investment (US$ bn