ARTÍCULO
TITULO

An evaluation of the inflation targeting strategy in Colombia

Germán Oswaldo Pardo Pardo    
Pedro Hugo Clavijo    

Resumen

This document aims to establish whether the inflation targeting strategy modified the economic structure in Colombia, causing a structural change in it. To do this, a vector autoregressive model (VAR) and, subsequently, two structural change tests were used: the Chow test and the maximum likelihood test. A VAR model with four variables was estimated for the period 1995M04 to 2015M05. The regression results allow concluding that the adoption of the inflation targeting strategy did represent a structural change for the Colombian economy and it helped to maintain a low and stable inflation.

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