An econometric model IS-LM to small and open economy: Colombian case 2000-2014

Abstract

This paper aims to estimate the trajectories of the main macroeconomic variables of the Colombian economy, from an IS-LM simple open econometric model in the period 2000I-2014IV, under the Productive Transformation Program (PTP) national government. It was found that endogenous variables (private consumption, private investment, government spending, net exports, inflation taylor rule) of the model show an increasing trend associated with the economic cycle