01892cas a2200265 a 4500 AALejournalIMF005697 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451872064 1018-5941 BD-DhAAL BD-DhAAL Flores, Enrique. Monetary and Fiscal Policy Options for Dealing with External Shocks : Insights from the GIMF for Colombia / Enrique Flores, Daniel Leigh, Benedict Clements. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (17 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper utilizes an open-economy New Keynesian overlapping generations model, the Global Integrated Monetary and Fiscal Model (GIMF), to assess the macroeconomic effects of external shocks and the impact of various monetary and fiscal policy responses. The simulations assess the effect of shocks to trade, world income, and risk premia for public debt. The results suggest that under Colombia's inflation targeting regime, which incorporates exchange rate flexibility and a highly responsive monetary policy, the economy is well poised to adjust to different external shocks. They also suggest that the potential role of fiscal policy in responding to shocks depends critically on financing conditions. Mode of access: Internet Clements, Benedict. Leigh, Daniel. IMF Working Papers; Working Paper ; No. 2009/059 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/059/001.2009.issue-059-en.xml IMF e-Library