Modeling the monetary policy reaction function of the colombian central bank

This paper proposes a simple Ordered Probit model to analyse the monetary policy reaction function of the Colombian Central Bank. There is evidence that the reaction function is asymmetric, in the sense that the Bank increases the Bank rate when the gap between observed inflation and the inflation target (lagged once) is positive, but it does not reduce the Bank rate when the gap is negative. This behaviour suggests that the Bank is more interested in fulfilling the announced inflation target rather than in reducing inflation excessively. The forecasting performance of the model, both within and beyond the estimation period, appears to be particularly good.

Occurrence of Kelvin-Helmholtz Billows in Sea-breeze Circulations

Centred at the interface between the sea-breeze and the return flow aloft, Kelvin-Helmholtz billows (KHB) are an important feature of the turbulent structure of some sea-breeze circulations (SBCs). In other SBCs, there are no prominent KHBs observed. Factors governing the appearance of billows are determined from a database of 139 sea breezes, constructed from two years of summertime surface observations at a site on the south coast of England. Post-frontal oscillations occur in the surface data for some SBCs and are interpreted as indicating possible KHBs aloft. The SBCs are formed under a wide range of synoptic conditions, enabling various measures of possible billow occurrence to be related to properties of the large-scale, ambient flow. Consistent with laboratory experiments of density currents, KHBs are suppressed for propagation into a head wind and enhanced with a tail wind. They are also found to be enhanced for stronger ambient wind speeds, while large-scale coast-parallel flow is effective in suppressing the billows.