Public debt in Colombia: a post-Keynesian and institutionalist analysis

Abstract

This article studies the institutional framework and the empirical evolution of Colombian public debt for the period 2001-2020 within a post-Keynesian approach. The objective is to render clear the potential that debt emission has as a macroeconomic policy instrument, and consequently to propose various policy routes for Colombian government. These policy routes suggest a different path than the one indicated by the orthodox economic tradition that has ruled the policy practiced in Colombia. In particular, taking into account the institutional and external limitations of fiscal policy, the revival of the ‘Development Bank’ inside the Central Bank of Colombia, and insist in and the need of cooperation and coordination of macroeconomic policies with the countries of the region are insisted.

Keywords

• Public debt
• Fiscal policy
• Monetary policy
• Colombia
• Post-Keynesian theory