After 25 years, the Colombian authorities decided to abandon the crawling peg exchange rate policy and implement a regime of nominal exchange rate bands. Initial conditions in Colombia contrast sharply with those of other cases in which bands were part of an ongoing effort to reduce high...

Inflation, exchange rate management and fiscal control are problems that worry Colombian society, specially nowadays when the country is assuming new economic and political points of view. This paper retakes the discussion on the macroeconomic effects. Of the government’s corrent...