Advanced Search
MyIDEAS: Login to save this paper or follow this series

How much fiscal adjustment is enough? The case of Colombia

Contents:

Author Info

  • Easterly, William R.

Abstract

This paper concludes that Colombia's impressive fiscal adjustment during 1985 - 1987 was due to structural changes in fiscal policy, not simply to such fortuitous events as the coffee boom. Although impressive, the fiscal adjustment fell short of actually improving the government's net financial position. Total public debt as a percentage of GDP was roughly unchanged, even after correcting for the effect of currency devaluation on dollar denominated instruments. Public development lending as a percentage of GDP fell slightly during the same period. The model simulations suggest that to reduce interest rates to more manageable levels would require continued reduction of the fiscal deficit, below levels currently envisioned. To reduce inflation would require even tighter fiscal policy. The magnitudes of required deficit reduction do not seem out of reach however, even allowing for uncertainty about the figures.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/1989/06/01/000009265_3960928003910/Rendered/PDF/multi_page.pdf
Download Restriction: no

Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 201.

as in new window
Length:
Date of creation: 30 Jun 1989
Date of revision:
Handle: RePEc:wbk:wbrwps:201

Contact details of provider:
Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Email:
Web page: http://www.worldbank.org/
More information through EDIRC

Related research

Keywords: Economic Stabilization; Economic Theory&Research; Banks&Banking Reform; Macroeconomic Management; Financial Intermediation;

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. World Bank, 2005. "Colombia : Public Expenditure Review," World Bank Other Operational Studies 8559, The World Bank.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:201. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.