| Sumario: | The article makes a presentation of monetary and exchange rate policy in Colombia during the last decade, with emphasis on the possible implementation of monetary trilemma, which states that the main implication of monetary policy is to determine an exchange rate desirable to achieve the purposes international trade, a desirable interest rate to encourage productive activity and increased capital mobility compatible with the inflation target performance goal. The inability of the trilemma verified considering the uncovered parity of interest rates in a macroeconomic environment characterized by a flexible exchange rate but revalued, low domestic interest rates and international financial market uncertainty, which has been reflected in an increase in the balances of the capital and financial account liabilities and especially more larger current account deficit.
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