By the time the Colombian government closed DMG and DRFE, two Ponzi schemes that were operating in Colombia until 2008, over half a million customers had deposited funds corresponding to 1.2% of Colombia's annual GDP. We show that the individuals who invested in DMG and DRFE obtained close to...

Many emerging economies have regulatory limits on foreign exchange rates net open positions of banks. We show that such limits leave the capital adequacy ratios of banks with investments in foreign subsidiaries more exposed to exchange rate fluctuations. We discuss alternative policies for...

Spanish Abstract: En la Presentación del Plan de desarrollo Para Cerrar la Brecha 1975-1978 el presidente Alfonso López Michelsen explicó que este “tenía como orientación cerrar las brechas que el modelo tradicional de desarrollo había creado. Se espera reducir las brechas entre el campo...

Real wages have been a good indicator of the standard of living of the working class. This document presents real wage series for different types of workers for three periods in modern Colombia. The data presented leads to the conclusion that in the last 170 years, real wages have increased less...