In this chapter, we characterize the joint history of monetary and fiscal policies in Colombia since 1960, following this volume’s “A Framework for Studying the Monetary and Fiscal History of Latin America.” Our analysis focuses on the joint evolution of inflation, economic performance, and the fiscal deficit of the Colombian central government and its sources of financing in the period between 1960 and 2017. As a first examination of our objects of interest, Figures 1, 2, and 3 present the evolution of the total fiscal deficit of the central government (as a percentage of GDP), consumer price index (CPI) inflation in Colombia, and real GDP per capita (against a counterfactual trend of 2 percent growth)...
