The paper analyzes Albert Hirschman's theory of linkages in economic development in his writings, and the possible influence of his Colombia experience in the development of this idea. The theory is then applied to explain Colombia’s economic history in the nineteenth and twentieth century....

After decades using monetary aggregates as the main instrument of monetary policy and having different varieties of crawling peg exchange rate regimes, Colombia adopted a full-fledged inflation-targeting (IT) regime in 1999, with inflation as the nominal anchor, a floating exchange rate, and the...