About the product
The paper reviews the experiences of Chile and Colombia with of Unremunerated Reserve requirements (URRs) on capital inflows during the 1990’s. In the first place it makes a brief description of the URR mechanism and reviews the rationale and objectives behind its use. It then reviews the context upon which these controls were implemented in Chile and Colombia and the details on how they worked in each case. Next it reviews the available literature in order to assess whether the objectives sought were fulfilled in both countries. The final section presents some brief conclusions.