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The Cyclical Position of The Fiscal Policy in Colombia During the Period 1990-2015

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  • Luis Hernando Portillo Riascos

    (Universidad de Nariño)

Abstract

This article seeks to determine the cyclical position of fiscal policy in Colombia during the period 1990-2015. For this purpose, three variables are used: government spending, cyclically adjusted fiscal deficit, and public debt. As a result of this exercise, it is concluded that fiscal policy in Colombia showed a procyclical and asymmetric position, which means that this economic policy tool acted as a destabilizing mechanism for aggregate demand and thus contributed to amplifying the effects generated by the external cycles. By components of expenditure, the variable with a much more marked bias due to the economic cycle was public investment.

Suggested Citation

  • Luis Hernando Portillo Riascos, 2021. "The Cyclical Position of The Fiscal Policy in Colombia During the Period 1990-2015," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 95, pages 45-83, July-Dece.
    • Handle: RePEc:lde:journl:y:2021:i:95:p:45-83
    DOI: 10.17533/udea.le.n95a343360
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Fiscal policy; macroeconomic vulnerability; public spending; cyclical position;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H69 - Public Economics - - National Budget, Deficit, and Debt - - - Other
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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