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

Hernando Vargas-Herrera and Carlos Varela ()

Borradores de Economia from Banco de la Republica de Colombia

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

Keywords: Capital flows; sterilization; exchange rate; foreign investment in Colombia; financial system. (search for similar items in EconPapers)
JEL-codes: E50 F32 F41 (search for similar items in EconPapers)
Date: 2008-04
References: Add references at CitEc
Citations: View citations in EconPapers (10)

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https://doi.org/10.32468/be.502 (application/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:bdr:borrec:502

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