A small open, oil-exporting country is likely to be hit hard by a collapse in oil prices, but the transmission of the shock depends on the structure of the economy, research published by the Central Bank of Colombia has found.

"Interestingly, the small-scale models highlight that the real exchange rate and net foreign assets appear to be the key variables in the long-term adjustment process of the economy," authors Franz Hamann, Jesús Bejarano and Diego Rodríguez write in Monetary policy