4  This is a well-known, if certainly surprising, fact. See, for example, J. Stock and M. Watson, “Has the business cycle changed? Evidence and explanations”, paper presented at the Federal Reserve Bank of Kansas City Symposium “Monetary Policy and Uncertainty,” Jackson Hole, Wyoming, August 28-30 2003.
Simultaneously, we must strive to enhance financial deepening and enlarge the set of financial instruments available to Colombian firms and households. However, we must do so without significantly increasing systemic risk or depriving policymakers of the tools they need to face shocks.