The integration of Colombia into the global economy has presented two policy challenges, says Jose Dario Uribe, the governor of the Banco de la Republica, Colombia.

Speaking in Bogota last week, Uribe named the two challenges:

to continue reducing inflation while keeping economic growth at a sustainable level; and

to help the economy adjust to a sharp real peso appreciation and to worldwide changes in relative prices.

The improvement in terms of trade had, he said, led to inflation and rise in