Tic en las pyme

5. Conclusions Conclusiones Since September 1999, monetary policy in Colombia has converged to a full-fledged, inflation- targeting strategy with an independent floating regime. The performance ofthe strategy has been satisfactory overall. Starting from a deep recession, the policy stance has been expansionary. Inflation has declined along decreasing targets, output has recovered andinternational reserves have reached levels that limit the external vulnerability of the economy. 8 8 This transaction allowed the Central Bank to replenish its stock of government securities, enhancing itsability to sterilize future interventions. 21 21
--------------------------------------------------------------------------------
Page 22 Página 22
The exchange rate has floated as much as in othercountries in the region with similar regimes. Intervention in the forex market has been consistent with the shifts in monetary policy. As a result, the Central Bank has not used capital controls since1999. The system has resembled managed floating in two episodes characterized by strong shifts in the exchange rate. From these episodes, it may be learned that intervention in the forex market hasbeen a useful complement of monetary policy actions. That is, relying only on the interest rates to deal with shocks to the capital account of the balance of payments may lead to inefficient volatilityin inflation or output. At the same time, intervention without consistent movements in monetary policy has not been effective in affecting the trend of the exchange rate. The most convincinghypothesis about the rationale for intervention in Colombia is the argument in favor of managed floating. However, a drawback of substantial intervention is the difficulty of communicating policy to the publicand the market. Another rationale relates to the Central Bank's subsidiary goals, which can be accommodated as long as inflation converges to its target. Among these, the Central Bank has mentioned...