Box 3: Effect of the Drop in Terms of Trade on Investment and Long-Term Sustainable Output
Keep in mind
Los análisis y pronósticos incluidos en este informe son producidos por el equipo técnico del Banco. Es la base principal sobre la cual se realiza la recomendación de política monetaria a la Junta Directiva del Banco de la República (JDBR) y por estas razones no refleja necesariamente la opinión de sus miembros.
Autor o Editor
Juan Sebastián Amador
Juan Pablo Cote
The recent drop in the country’s terms of trade had a significant impact on economic growth. This section looks at what would happen to long-term sustainable growth if that decline were to be permanent. This is particularly important when considering the Board of Directors of Banco de la República (BDBR) has a constitutional mandate to keep inflation low and steady, in coordination with an economic policy that is intended to stabilize output and employment at their sustainable long-term or “potential” levels.
