Macro Characterization of the Fiscal Policy in Colombia and Stance in Front of the Global Crisis (2008-2009)
Luis I. Lozano
Banco de la Republica
June 30, 2011
Cuadernos de Economía, Vol. 30, No. 54, p. 49, 2011
This paper characterizes fiscal policy in Colombia and discusses the government’s stance against the global financial crisis of 2008-09. Using a policy rule, the paper finds that discretionary fiscal policy has been procyclical, has reduced its volatility in recent years, and has been consistent with the intertemporal budget constraint. The evidence also indicates that the fiscal authority did not design a countercyclical discretionary program to offset the effects of the crisis. Instead, it expected automatic stabilizers to operate in the economic recovery, to rebalance public finances.
Note: Downloadable document is in Spanish.
Number of Pages in PDF File: 34
Keywords: economic cycles, fiscal rule, fiscal policy, deficit, surplus, déficit forecasts, debt forecasts, Colombia
JEL Classification: E32, E62, H62, H68
Date posted: September 21, 2011