Choques internacionales reales y fi nancieros y su impacto sobre la economía colombiana

Abstract

This document uses the FAVAR (Factor Augmented VAR) methodology to evaluate the impact of unexpected variations in four international variables: the short term interest rates; the risk; the real price of oil, coffee and coal; and the world economic activity. Impulse response functions and historic decomposition of shocks are used to assess the impact of external factors on economic activity in Colombia, with particular emphasis on the crisis at the end of the century.