TY - BOOK ID - 11946831 TI - Achieving a Soft Landing : The Role of Fiscal Policy PY - 2008 VL - WP/08/69 SN - 1451913842 1462376991 9786612840418 1451869312 128284041X 1452751102 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Fiscal policy KW - Monetary policy KW - Econometric models. KW - Monetary management KW - Tax policy KW - Taxation KW - Government policy KW - Economic policy KW - Currency boards KW - Money supply KW - Finance, Public KW - Inflation KW - Investments: General KW - Macroeconomics KW - Public Finance KW - Fiscal Policy KW - Investment KW - Capital KW - Intangible Capital KW - Capacity KW - Taxation, Subsidies, and Revenue: General KW - Price Level KW - Deflation KW - Public finance & taxation KW - Return on investment KW - Fiscal stance KW - Revenue administration KW - Saving and investment KW - Revenue KW - Prices KW - Colombia UR - https://www.unicat.be/uniCat?func=search&query=sysid:11946831 AB - This paper utilizes an open-economy New Keynesian overlapping generations model to assess the extent to which fiscal policy, along side an inflation-forecast-based monetary policy, could enhance macroeconomic stability in Colombia. The model simulations indicate that, in addition to stabilizing output and inflation, a stronger response of the fiscal balance to excess tax revenue would reduce the burden on the central bank of adjusting interest rates, lessen the associated degree of exchange rate volatility, and contribute to a more stable external current account balance. The analysis also assesses how the success of fiscal policy in enhancing macroeconomic stability depends on the type of shock, the response of monetary policy, and the length of fiscal policy implementation lags. ER -