Juan Gonzalo Angel Restrepo Advocates Counter Cyclical Policy

Juan Gonzalo Angel Restrepo, the noted founder of the Cablenoticias news channel in Colombia, recently gave his view on the state of the economy in Colombia. Juan Gonzalo Angel Restrepo’s comments, which were posted on his blog in December 2013, point toward the adoption of a counter cyclical policy.

Mr. Restrepo said that he believes current interest rates in Colombia could be reduced with a public spending plan that is designed to meet overall consumer demand. He also added that he believes that Colombia’s central bank has certain margins that it should utilize as well. These margins could be implemented to produce monetary gains and expand the amount of credit that is used in the economy. He added that he believed that the bank had more latitude in this regard than the government. He also said that he advocates the implementation of a counter cyclical policy.

A counter cyclical policy is a governmental policy that is instituted to lessen antisocial behavior during an economic period. Policies of this type promote the tightening of credit during cycles that are marked by inflation, and prompt spending activities when there is a downturn in the economy.