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Date of Award

Spring 2014

Degree Name

Bachelor of Science



First Advisor

Miguel Ramirez


Since there has been a surge in net private capital flows to Colombia in the past 3 years, and there might be a housing-price bubble, the study of the effectiveness of controls for private capital flows is more important now than ever before. Did the non-remunerated reserve requirement imposed on private capital inflows in Colombia decrease the net amount of private capital flows? Following the empirical work of Cárdenas and Steiner (2000), this study modifies the previous study by adding the second period of controls in Colombia, and extends it by undertaking a unit root and vector error cointegration analysis. The study found that controls were not capable of decreasing the net private capital flows in the short-run, but they were able to do so in the long run. These findings demonstrate that the use of controls should be considered for implementation in a world of increasing financial integration so as to prevent volatility in the real exchange rate.


Senior thesis completed at Trinity College for the degree of Bachelor of Science in Economics. Access is restricted to the Campus community only.