Macroeconomic Gains from Structural Fiscal Policy Adjustments: The Case of Colombia

Abstract

The article highlights the aspects of fiscal policy and public debt management in Colombia in 2015. It discusses the adoption of an inflation-targeting regime by the state-run central bank Central Bank of Colombia with a floating exchange rate, which enhanced the credibility of the institution. It explores the implementation of measures by the government to strengthen the financial system and promote competitiveness and flexibility with labor market policies.