Herrera-Pinto, Nicolle Valentina

Financial conditions reflect the state of financial factors that, through various channels (e.g., leverage), influence the current and future evolution of key economic variables (Hatzius et al., 2010). Accordingly, the Financial Conditions Index (FCI) for Colombia is constructed to synthesize…

Macroeconomic imbalances are understood as the deviations of key variables from their long-term equilibrium values. These imbalances can accumulate over time, often during economic boom periods, increasing an economy’s vulnerability to adverse shocks and preface economic contractions and…