For the evaluation of macroeconomic policies Colombian authorities rely heavily, if not exclusively, on the operational framework known as the Financial Programming Model developed by the IMF in the 1950s. Based on this static framework, the formulation of fiscal policy in the country, just as...

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...