Fiscal policy in Colombia exacerbates economic cycles, destabilizing aggregate demand.
The article examines how Colombia's fiscal policy behaved from 1990 to 2015. By looking at government spending, fiscal deficit, and public debt, it was found that the fiscal policy in Colombia tended to follow the economic cycle, acting as a destabilizing force on the economy. This means that it made the ups and downs of the economy more extreme. Public investment was the area most affected by these fluctuations.