Does the Price Puzzle Exist in Colombia? Empirical Evidence and Policy Implications

Three essays on international trade

“…This technique has been used by Sheng and Tu (2000) for examining the linkage among the stock markets of 12 Asia-Pacific countries, before and during the period of the Asian financial crisis. Solomon and Ruiz (2006) also utilized the technique for detecting the existence of price puzzle in Colombia, before and during inflation targeting period.…”

Three essays on international trade

“…Following Solomon and Ruiz (2006), this paper includes the Chow break point test which will inform us about the presence of structural break in each bilateral case. The limitation of the technique is that it clearly prejudges the point of the sampling break, whe re some serious consequences might influence the result (Gerlach et al, 2006).…”