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Macro Characterization of the Fiscal Policy in Colombia and Stance in Front of the Global Crisis (2008-2009)

Cuadernos de Economía, Vol. 30, No. 54, p. 49, 2011

34 Pages Posted: 21 Sep 2011  

Luis I. Lozano

Banco de la Republica

Date Written: June 30, 2011

Abstract

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.

Notes: Downloadable document is in Spanish.

Keywords: economic cycles, fiscal rule, fiscal policy, deficit, surplus, déficit forecasts, debt forecasts, Colombia

JEL Classification: E32, E62, H62, H68

Suggested Citation

Lozano, Luis I., Macro Characterization of the Fiscal Policy in Colombia and Stance in Front of the Global Crisis (2008-2009) (June 30, 2011). Cuadernos de Economía, Vol. 30, No. 54, p. 49, 2011. Available at SSRN: https://ssrn.com/abstract=1931091

Luis I. Lozano (Contact Author)

Banco de la Republica ( email )

Cra. 7 No. 14-78 Piso 12
Bogota
Colombia

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