Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Colombian Economy in the nineties: Capital Flows and Foreign Exchange Regimes

Contents:

Author Info

  • Leonardo Villar

    ()

  • Hernán Rincón

    ()

Abstract

During several decades, Colombia was considered a very special case among Latin American countries due to its outstanding economic stability. Despite deep political problems and a long tradition of violence, economic growth was sustained. Colombia experienced moderate economic cycles and a steady GDP growth (Banco Interamericano de Desarrollo, 1995). Between 1931 and 1998, the rate of growth of GDP was always positive and inflation was kept under control, although the latter one remained at moderately high levels, between 20% and 30%, during almost three decades starting in the early seventies. Quoting Dornbusch and Fisher (1992), Colombia was, “par excellence, the country of moderate inflation”. Before the nineties, Colombian economic stability was well grounded in a relatively orthodox fiscal policy, a monetary policy that was complacent with inertial inflation but which had a high degree of aversion against inflation rates above 30%, and a foreign exchange policy that gave heavy weight to real exchange rate stability among other policy objectives.

(This abstract was borrowed from another version of this item.)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.banrep.gov.co/docum/ftp/borra149.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Banco de la Republica de Colombia in its series Borradores de Economia with number 149.

as in new window
Length:
Date of creation:
Date of revision:
Handle: RePEc:bdr:borrec:149

Contact details of provider:
Postal: Cra 7 # 14-78 Piso 7
Phone: (57-1) 3431111
Fax: (57-1) 2841686
Email:
Web page: http://www.banrep.org/publicaciones/pub_borra.htm
More information through EDIRC

Related research

Keywords:

Other versions of this item:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Harbo, Ingrid, et al, 1998. "Asymptotic Inference on Cointegrating Rank in Partial Systems," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 16(4), pages 388-99, October.
  2. Clarida, Richard & Gali, Jordi, 1994. "Sources of real exchange-rate fluctuations: How important are nominal shocks?," Carnegie-Rochester Conference Series on Public Policy, Elsevier, Elsevier, vol. 41(1), pages 1-56, December.
  3. Jun Nagayasu & Ronald MacDonald, 1999. "The Long-Run Relationship Between Real Exchange Rates and Real Interest Rate Differentials," IMF Working Papers 99/37, International Monetary Fund.
  4. Eliane A. Cardoso & Ilan Goldfajn, 1997. "Capital Flows to Brazil-The Endogeneity of Capital Controls," IMF Working Papers 97/115, International Monetary Fund.
  5. Frederic S. Mishkin, 1982. "The Real Interest Rate: A Multi-Country Empirical Study," NBER Working Papers 1047, National Bureau of Economic Research, Inc.
  6. José Antonio Ocampo & Camilo Ernesto Tovar, 1999. "Price-based capital account regulations: the Colombian experience," DOCUMENTOS DE INVESTIGACION 003372, CEPAL NACIONES UNIDAS.
  7. Sebastian Edwards, 1989. "Real Exchange Rates in the Developing Countries: Concepts and Measure- ment," NBER Working Papers 2950, National Bureau of Economic Research, Inc.
  8. Mussa, Michael, 1976. " The Exchange Rate, the Balance of Payments and Monetary and Fiscal Policy under a Regime of Controlled Floating," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 78(2), pages 229-48.
  9. Rudiger Dornbusch & Stanly Fischer, 1992. "Inflación moderada," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE, BANCO DE LA REPÚBLICA - ESPE.
  10. Ronald MacDonald, 1997. "What Determines Real Exchange Rates? The Long and Short of it," IMF Working Papers 97/21, International Monetary Fund.
  11. Hernán Rincón, 2000. "Efectividad del control a los flujos de capital: Un reexamen empírico de la experiencia reciente en Colombia," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO.
  12. repec:cup:etheor:v:6:y:1990:i:2:p:171-261 is not listed on IDEAS
  13. Hernán Rincón, 1999. "Testing The Short And Long Run Exchange Rate Effects On The Trade Balance: The Case Of Colombia," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE, BANCO DE LA REPÚBLICA - ESPE.
  14. Juan C. Jaramillo & Roberto Steiner & Natalia Salazar, 1999. "The political economy of exchange rate policy in Colombia," WORKING PAPERS SERIES. DOCUMENTOS DE TRABAJO, FEDESARROLLO 009194, FEDESARROLLO.
  15. Guillermo Mondiano & Rob Rennhack, 1989. "Movilidad De Capitales Y Politica Monetaria En Colombia," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE, BANCO DE LA REPÚBLICA - ESPE.
  16. Alan C. Stockman, 1978. "A Theory of Exchange Rate Determination," UCLA Economics Working Papers, UCLA Department of Economics 122, UCLA Department of Economics.
  17. Hendry, David F. & Learmer, Edward E. & Poirier, Dale J., 1990. "A Conversation on Econometric Methodology," Econometric Theory, Cambridge University Press, Cambridge University Press, vol. 6(02), pages 171-261, June.
  18. Rudiger Dornbusch & Stanley Fischer, 1992. "La inflación moderada," Economia Mexicana NUEVA EPOCA, , vol. 0(1), pages 5-70, January-J.
  19. Ronald Mac Donald, 1998. "What Do We Really Know About Real Exchange Rates?," Working Papers, Oesterreichische Nationalbank (Austrian Central Bank) 28, Oesterreichische Nationalbank (Austrian Central Bank).
  20. Juan Ricardo Ortega & Alejandro López Mejía, 1998. "Private Saving in Colombia," IMF Working Papers 98/171, International Monetary Fund.
  21. Meese, R. & Rogoff, K., 1988. "Was It Real? The Exchange Rate-Interest Differential Ralation Over The Modern Floating-Rate Period," Working papers, Wisconsin Madison - Social Systems 368, Wisconsin Madison - Social Systems.
  22. Alberto Carrasquilla & Hernán Rincón, 1990. "Relaciones entre déficit público y ahorro privado: Aproximaciones al caso colombiano," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE, BANCO DE LA REPÚBLICA - ESPE.
  23. Cordella, Tito, 1998. "Can Short-Term Capital Controls Promote Capital Inflows," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2011, C.E.P.R. Discussion Papers.
  24. Mohsin S. Khan & Peter J. Montiel, 1987. "Real Exchange Rate Dynamics in a Small, Primary-Exporting Country," IMF Staff Papers, Palgrave Macmillan, vol. 34(4), pages 681-710, December.
  25. Michael L. Mussa, 1984. "The Theory of Exchange Rate Determination," NBER Chapters, National Bureau of Economic Research, Inc, in: Exchange Rate Theory and Practice, pages 13-78 National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Lavan Mahadeva & Javier Gómez Pineda, 2009. "The international cycle and Colombian monetary policy," BORRADORES DE ECONOMIA 005406, BANCO DE LA REPÚBLICA.
  2. David, Antonio C., 2007. "Controls on capital inflows and external shocks," Policy Research Working Paper Series 4176, The World Bank.
  3. José Antonio OCAMPO, 2001. "Recasting The International Financial Agenda," G-24 Discussion Papers, United Nations Conference on Trade and Development 13, United Nations Conference on Trade and Development.
  4. Jorge Ramos & Hernán Rincón, . "El Balance Fisacl y el Balance en la Cuenta Corriente en Colombia: Canales de Transmisión y Causalidad," Borradores de Economia 166, Banco de la Republica de Colombia.
  5. Peter Rowland & Hugo Oliveros, 2003. "Colombian Purchasing Power Parity Analysed Using A Framework of Multivariate Cointegration," BORRADORES DE ECONOMIA 002150, BANCO DE LA REPÚBLICA.
  6. Javier Gómez & Juan Manuel Julio, 2003. "Transmission Mechanism and Inflation Targeting: The Case of Colombia's Desinflation," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines, vol. 18(2), pages 109-133, December.
  7. Peter Rowland, . "Exchange Rate Pass-Throught to Domestic Prices: The Case of Colombia," Borradores de Economia 254, Banco de la Republica de Colombia.
  8. Peter Rowland, 2003. "Forecasting The Usd/Cop Exchange Rate: A Random Walk With A Variable Drift," BORRADORES DE ECONOMIA 002736, BANCO DE LA REPÚBLICA.
  9. Fernando Tenjo & Enrique Lopez, 2003. "Credit bubble and stagnation in Colombia, 1990-2001," Colombian Economic Journal, Academia Colombiana de Ciencias Economicas, Colegio Mayor de Nuestra Senora del Rosario, Pontificia Universidad Javeriana, Universidad de Antioquia, Universidad de los Ande, Academia Colombiana de Ciencias Economicas, Colegio Mayor de Nuestra Senora del Rosario, Pontificia Universidad Javeriana, Universidad de Antioquia, Universidad de los Andes, Universidad del Valle, Universidad Externado de Colombia, Universidad Nacional de Colombia, vol. 1(1), pages 151-191, December.
  10. Fernando Tenjo & Enrique López, . "Burbuja y Estancamiento del Crédito en Colombia," Borradores de Economia 215, Banco de la Republica de Colombia.
  11. Hernandez, Gustavo Adolfo & Nunez, Jairo & Gonzalez, Nestor, 2007. "¿Es posible alcanzar los Objetivos del Milenio en Colombia? Una evaluación de estrategias de focalización y financiamiento," MPRA Paper 28432, University Library of Munich, Germany.
  12. José Darío Uribe, 2005. "Capital controls and foreign exchange market intervention in Colombia," BIS Papers chapters, Bank for International Settlements, in: Bank for International Settlements (ed.), Globalisation and monetary policy in emerging markets, volume 23, pages 128-40 Bank for International Settlements.
  13. Concha, Alvaro & Galindo, Arturo José & Vasquez, Diego, 2011. "An assessment of another decade of capital controls in Colombia: 1998–2008," The Quarterly Review of Economics and Finance, Elsevier, Elsevier, vol. 51(4), pages 319-338.
  14. Peter Rowland & Hugo OLiveros C., . "Colombian Purchasing Power Parity Analysed Using a Framework of Multivariate Cointegration," Borradores de Economia 252, Banco de la Republica de Colombia.
  15. Javier Guillermo Gómez, 2006. "La Política Monetaria En Colombia," BORRADORES DE ECONOMIA 003054, BANCO DE LA REPÚBLICA.
  16. Peter Rowland, . "Forecasting the USD/COP Exchange Rate: A Random Walk a Variable Drift," Borradores de Economia 253, Banco de la Republica de Colombia.
  17. Javier Gómez & Juan Manuel Julio, . "Transmission Mechanisms and Inflation Targeting: The Case of Colombia Disinflation," Borradores de Economia 168, Banco de la Republica de Colombia.
  18. Peter Rowland, . "Uncovered Interest Parity and the USD/COP Echange Rate," Borradores de Economia 227, Banco de la Republica de Colombia.
  19. Peter Rowland, 2003. "Exchange Rate Pass-Through To Domestic Prices: The Case Of Colombia," BORRADORES DE ECONOMIA 002683, BANCO DE LA REPÚBLICA.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bdr:borrec:149. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Camilo Millán).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.