Macroeconomic Effects of Structural Fiscal Policy Changes in Colombia
42 Pages Posted: 13 Apr 2013
Date Written: October 1, 2012
Abstract
In the past decade the Colombian economic authorities undertook a series of measures that reduced the structural fiscal deficit, decreased the government currency mismatch and deepened the local fixed-rate public bond market. This paper presents some evidence suggesting that these improvements had important effects on the behavior of the macroeconomy. They seem to have permanently reduced the sovereign risk premium, increased the reaction of output to government expenditure shocks and strengthened the response of market interest rates to monetary policy shocks.
Full publication: Fiscal Policy, Public Debt and Monetary Policy in Emerging Market Economies
Keywords: Monetary policy, fiscal policy changes, public debt management, government expenditure, market interest rates, monetary policy shocks
JEL Classification: E44, E6, E62
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
By António Afonso and Priscilla Toffano
-
By António Afonso and Priscilla Toffano
-
By António Afonso and Priscilla Toffano
-
What Do We Really Know about Fiscal Sustainability in the EU? A Panel Data Diagnostic
By Christophe Rault and Antonio Afonso
-
What Do We Really Know About Fiscal Sustainability in the EU? A Panel Data Diagnostic
By António Afonso and Christophe Rault
-
What Do We Really Know about Fiscal Sustainability in the EU? A Panel Data Diagnostic
By António Afonso and Christophe Rault
-
Fiscal Sustainability in the EU: A Panel Data Diagnostic
By António Afonso and Christophe Rault
-
Fiscal Policy Responsiveness, Persistence and Discretion
By António Afonso, Luca Agnello, ...