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Colombian Monetary and Exchange Rate Policy Over the Past Decade


  • José Antonio Ocampo

    (School of International and Public Affairs, Columbia University, 420 West 118th St., Office 1315, New York, NY 10027, USA.)

  • Jonathan Malagón

    (School of Economics, Universidad Nacional de Colombia. Ciudad Universitaria, Carrera 30 Calle 45-03, Edificio 311, 111321, Bogotá D.C., Colombia.)


This paper analyzes the performance of Colombia’s monetary and exchange rate policies over the past decade. It concludes that compared with other medium and large-sized Latin American economies using inflation targeting-cum-managed floating, Colombia has been the most effective in meeting its inflation target. The Colombian central bank has also shown an earlier and greater determination than its partners in pursuing a counter-cyclical monetary policy. But it clearly failed in the objective of avoiding exchange rate overvaluation, particularly in the aftermath of the North-Atlantic financial crisis. This has generated effects on the structure of domestic production and exports that have long-term implications.

Suggested Citation

  • José Antonio Ocampo & Jonathan Malagón, 2015. "Colombian Monetary and Exchange Rate Policy Over the Past Decade," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 57(3), pages 454-482, September.
  • Handle: RePEc:pal:compes:v:57:y:2015:i:3:p:454-482

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    Cited by:

    1. Guzman, Martin & Ocampo, Jose Antonio & Stiglitz, Joseph E., 2018. "Real exchange rate policies for economic development," World Development, Elsevier, vol. 110(C), pages 51-62.
    2. Hernando Vargas & Pamela Cardozo & Mauricio Villamizar, 2019. "International reserve policy and the effectiveness of sterilized FX intervention in Colombia," BIS Papers chapters, in: Bank for International Settlements (ed.), Reserve management and FX intervention, volume 104, pages 103-116, Bank for International Settlements.

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