This paper focuses on monetary and exchange rate policies in Colombia, with particular emphasis over the period 1999-2002, when flotation of the peso/dollar and inflation targeting were adopted. We argue, first, in favor of adopting “operational inflation ranges”, once inflation has been brought down to one digit over the last four years, and, secondly, in favor of strengthening the current sch...

I thank Jim Crotty for many helpful suggestions, Bob Pollin for very useful discussions on some of the material presented here, Minsik Choi, Dorothy Power and Max Maximov for excellent research assistance and the Ford and Rockefeller Foundations for essential financial support. All errors, of course, are mine and mine alone. Please send comments and suggestions to: [email protected] 2 Ab...