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The Shock- Absorber Role of the Internal Public Debt in Colombia, 1923-2003

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  • Mauricio Avella Gómez

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    Abstract

    The hypothesis that the internal public debt has played the role of shock absorber in Colombia since 1923 is modelled. 1923 was an important landmark in the history of fiscal and monetary reforms in Colombia during the twentieth century. The econometric results offer a strong support for the hypothesized shock-absorber role of the internal debt.

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    Paper provided by Banco de la Republica de Colombia in its series Borradores de Economia with number 342.

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    Handle: RePEc:bdr:borrec:342

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    Keywords: Deficit; surplus; Debt; Latin America;

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