| Description |
1 online resource (23 pages) : illustrations |
| Series |
IMF working paper, 2227-8885 ; WP/08/69 |
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IMF working paper ; WP/08/69.
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| Contents |
I. Introduction; II. Methodology; III. Results: Macroeconomic Effects of Fiscal Policy Tightening; Figures; 1. Domestic Risk Premium and the Debt-to-GDP Ratio; 2. Exogenous Permanent Cut in Public Consumption of 0.5 Percent of GDP; 3. Exogenous Permanent Cut in Public Investment of 0.5 Percent of GDP; IV. Results: Fiscal Policy and Macroeconomic Stability; 4. Private Savings Shock and Strength of Fiscal Policy Response; 5. Markup Shock and Strength of Fiscal Policy Response; 6. Efficiency Frontier: Markup Shock |
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7. Efficiency Frontier for Different Monetary Policy Response Parameters8. Temporary Fall in Risk Premium by 100 Basis Points; 9. Risk Premium Shock and Strength of Fiscal Policy Response; V. Conclusions; References |
| Summary |
This paper utilizes an open-economy New Keynesian overlapping generations model to assess the extent to which fiscal policy, along side an inflation-forecast-based monetary policy, could enhance macroeconomic stability in Colombia. The model simulations indicate that, in addition to stabilizing output and inflation, a stronger response of the fiscal balance to excess tax revenue would reduce the burden on the central bank of adjusting interest rates, lessen the associated degree of exchange rate volatility, and contribute to a more stable external current account balance. The analysis also assesses how the success of fiscal policy in enhancing macroeconomic stability depends on the type of shock, the response of monetary policy, and the length of fiscal policy implementation lags |
| Bibliography |
Includes bibliographical references (pages 22-23) |
| Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
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English |
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digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
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Print version record |
| Subject |
Fiscal policy -- Colombia -- Econometric models
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Monetary policy -- Colombia -- Econometric models
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Fiscal policy -- Econometric models
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Monetary policy -- Econometric models
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Colombia
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| Form |
Electronic book
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| Author |
International Monetary Fund. Fiscal Affairs Department.
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| ISBN |
1451913842 |
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9781451913842 |
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1462376991 |
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9781462376995 |
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1452751102 |
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9781452751108 |
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128284041X |
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9781282840416 |
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9786612840418 |
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6612840412 |
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