Capital Flows and Financial Assets in Colombia: Recent Behavior, Consequences and Challenges for the Central Bank

Hernando Vargas-Herrera and Carlos Varela ()

No 4588, Borradores de Economia from Banco de la Republica

Abstract: This paper analyzes the evolution and impact of capital flows in Colombia over the pastfive years. An examination of the nature and composition of the capital flows indicatesthat to large extent they have originated in foreign direct investment, especially in theoil and mining sectors. The repercussions of capital flows for the stability and fragilityof the financial system are also discussed. Finally, some of the challenges faced by theauthorities in dealing with the implications of capital flows for the conduct of monetaryand exchange rate policies are presented

Keywords: Capital flows; sterilization; exchange rate; foreign investment inColombia; financial system. (search for similar items in EconPapers)
JEL-codes: E50 F32 F41 (search for similar items in EconPapers)
Pages: 36
Date: 2008-04-02
New Economics Papers: this item is included in nep-cba
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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http://www.banrep.gov.co/docum/ftp/borra502.pdf

Related works:
Chapter: Capital flows and financial assets in Colombia: recent behaviour, consequences and challenges for the central bank (2008)
Working Paper: Capital Flows and Financial Assets in Colombia: Recent Behavior, Consequences and Challenges for the Central Bank (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000094:004588

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