the standard IRBC model helps explaining the observed high real exchange rate volatility. Also we show that the observed … increase of the real exchange rate volatility with respect to output in the last 20 year can be explained by changes in t …

This paper assesses the effects of capital controls imposed in Colombia in 2007 on capital flows and exchange rate … the appreciation of Colombia's currency, or increased the degree of independence of monetary policy. We also find that … controls have significantly increased the volatility of the exchange rate. Additional research is needed to assess …