This paper studies the main determinants of the sharp decline in Colombia`s private saving rate which accompanied the steep deterioration of the country`s external current account deficit in the 1990s. The paper rejects current arguments pointing to a consumption boom and corporate behavior as...

This paper studies the main determinants of the sharp decline in Colombia’s private saving rate which accompanied the steep deterioration of the country’s external current account deficit in the 1990s. The paper rejects current arguments pointing to a consumption boom and corporate behavior...