Download or read book Optimal Fiscal Strategy for Oil Exporting Countries written by Eduardo Engel and published by International Monetary Fund. This book was released on 2000-06 with total page 98 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops simple guidelines for fiscal policy in oil producing countries, focusing on three issues: intergenerational oil distribution, precautionary saving, and adjustment costs. The paper presents a framework to analyze how the revenue generated by an exhaustible source of wealth that belongs to the government should be distributed between current and future generations. This framework is used to show the strengths and limitations of existing answers, which motivates a new approach for dealing with this question. The paper derives simple, closed form approximations to the optimal level of government expenditure when an important part of government revenue is generated by an uncertain and exhaustible natural resource such as oil. Price uncertainty, budget uncertainty, and the (possibly asymmetric) costs of adjusting expenditure levels are considered.
Download or read book Optimal Fiscal Strategy for Oil Exporting Countries written by and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The International Monetary Fund (IMF) presents the full text of an article entitled "Optimal Fiscal Strategy for Oil Exporting Countries," by Eduardo Engel and Rodrigo Valdes and published June 2000. The article discusses guidelines for fiscal policy in oil producing countries, focusing on intergenerational oil distribution, precautionary saving, and adjustment costs.
Download or read book Optimal Fiscal Strategy for Oil Exporting Countries written by Eduardo M. R. A. Engel and published by . This book was released on 2006 with total page 71 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops simple guidelines for fiscal policy in oil producing countries, focusing on three issues: intergenerational oil distribution, precautionary saving, and adjustment costs. The paper presents a framework to analyze how the revenue generated by an exhaustible source of wealth that belongs to the government should be distributed between current and future generations. This framework is used to show the strengths and limitations of existing answers, which motivates a new approach for dealing with this question. The paper derives simple, closed form approximations to the optimal level of government expenditure when an important part of government revenue is generated by an uncertain and exhaustible natural resource such as oil. Price uncertainty, budget uncertainty, and the (possibly asymmetric) costs of adjusting expenditure levels are considered.
Download or read book Rethinking Fiscal Policy in Oil Exporting Countries written by Mr.Tokhir N Mirzoev and published by International Monetary Fund. This book was released on 2019-05-17 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the existing fiscal policy paradigm in commodity-exporting countries. First, we argue that its centerpiece—the permanent income hypothesis (PIH)—is not consistent with either intergenerational equity or long-term sustainability in the presence of uncertainty. Policies to achieve these goals need to be more prudent and better anchored than the PIH. Second, we point out the presence of a volatility tradeoff between government spending and wealth and re-assess long-held views on the appropriate fiscal anchors, the vice of procyclicality, and the (im)possibility of simultaneously smoothing consumption and ensuring intergenerational equity and sustainability. Finally, we propose what we call a prudent wealth stabilization policy that would be more consistent with long-term fiscal policy goals, yet relatively simple to implement and communicate.
Download or read book Cyclical Fiscal Rules for Oil Exporting Countries written by Stephen Snudden and published by International Monetary Fund. This book was released on 2013-11-06 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: Structural budget-balance rules with countercyclical elements appear well suited to stabilize the macroeconomic volatility of oil-exporting countries and have been used successfully by other commodity exporters. Using a global DSGE model, the efficient design of such rules is found to depend on the source of oil price fluctuations and the oil exporters’ structural characteristics. The output-inflation tradeoff is of particular concern for oil exporters relative to non-oil exporters due to the pass through of oil prices into headline inflation. Fiscal rules are best when coordinated with inflation targeting monetary policy, but are still desirable for fixed exchange rate regimes.
Download or read book Fiscal Policy and Economic Cycles in Oil exporting Countries written by Aasim M. Husain and published by . This book was released on 2008 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper empirically assesses the impact of oil price shocks on the underlying non-oil economic cycle in oil-exporting countries. Panel VAR analysis and the associated impulse responses indicate that in countries where the oil sector is large in relation to the economy, oil price changes affect the economic cycle only through their impact on fiscal policy. Once fiscal policy changes are removed, oil price shocks do not have a significant independent effect on the economic cycle.
Download or read book External Adjustment in Oil Exporters written by Mr.Alberto Behar and published by International Monetary Fund. This book was released on 2016-09-08 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: After the decline in oil prices, many oil exporters face the need to improve their external balances. Special characteristics of oil exporters make the exchange rate an ineffective instrument for this purpose and give fiscal policy a sizeable role. These conclusions are supported by regression analysis of the determinants of the current account balance and of the trade balance. The results show little or no relationship with the exchange rate and, especially for the less diversified oil exporters (including the Gulf Cooperation Council), a strong relationship with the fiscal balance or government spending.
Download or read book Fiscal Policy in Open Developing Economies written by Mr.Vito Tanzi and published by International Monetary Fund. This book was released on 1990-06-15 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on papers presented at the 44th Congress of the international Institute of Public Finance, this book, edited by Vito Tanzi, deals with public finance and macroeconomic policy in open, developing economies, with case studies of Chile, Mexico, Turkey, Korea, and the Arab oil exporting countries.
Download or read book Fiscal Policy Challenges in Oil exporting Countries written by Michael Sturm and published by . This book was released on 2009 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Political Economy of Fiscal Policy and Economic Management in Oil exporting Countries written by Benn Eifert and published by . This book was released on 2002 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Oil Prices Fiscal Policy and Economic Growth in Oil exporting Countries written by Amany A. El-Anshasy and published by . This book was released on 2006 with total page 352 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Optimal Fiscal Strategy for Oil Exporting Countries written by Eduardo Engel and published by . This book was released on 2000 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Political Economy of Fiscal Policy and Economic Management in Oil Exporting Countries written by Alan Gelb and published by . This book was released on 2016 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite massive oil rent ...
Download or read book Fiscal Policy Rules for Oil Producing Countries A Welfare Based Assessment written by Wojciech Maliszewski and published by INTERNATIONAL MONETARY FUND. This book was released on 2009-06-01 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper presents numerical simulations of various fiscal rules for oil-producing countries. Welfare implications are sensitive to the choice of the social welfare function, initial conditions, and non-oil growth prospects. The distribution of non-oil wealth is important for countries with relatively low oil reserves. Corrections for adjustment costs and uncertainty with respect to oil prices should be applied carefully. While avoiding sharp changes in the fiscal policy stance may be appealing, it is not necessarily optimal if the initial position is unsustainable. Ad hoc rules are shown to perform poorly. The analysis abstracts from several issues critical for developing a practical policy advice and should not be treated as a complete framework.
Download or read book Rethinkin Fiscal Policy in Oil exporting Countries written by Tokhir Mirzoev and published by . This book was released on 2019 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the existing fiscal policy paradigm in commodity-exporting countries. First, we argue that its centerpiece—the permanent income hypothesis (PIH)—is not consistent with either intergenerational equity or long-term sustainability in the presence of uncertainty. Policies to achieve these goals need to be more prudent and better anchored than the PIH. Second, we point out the presence of a volatility tradeoff between government spending and wealth and re-assess long-held views on the appropriate fiscal anchors, the vice of procyclicality, and the (im)possibility of simultaneously smoothing consumption and ensuring intergenerational equity and sustainability. Finally, we propose what we call a prudent wealth stabilization policy that would be more consistent with long-term fiscal policy goals, yet relatively simple to implement and communicate.
Download or read book The Future of Oil and Fiscal Sustainability in the GCC Region written by Mr.Tokhir N Mirzoev and published by International Monetary Fund. This book was released on 2020-02-06 with total page 55 pages. Available in PDF, EPUB and Kindle. Book excerpt: The oil market is undergoing fundamental change. New technologies are increasing the supply of oil from old and new sources, while rising concerns over the environment are seeing the world gradually moving away from oil. This spells a significant challenge for oil-exporting countries, including those of the Gulf Cooperation Council (GCC) who account for a fifth of the world’s oil production. The GCC countries have recognized the need to reduce their reliance on oil and are all implementing reforms to diversify their economies as well as fiscal and external revenues. Nevertheless, as global oil demand is expected to peak in the next two decades, the associated fiscal imperative could be both larger and more urgent than implied by the GCC countries’ existing plans.
Download or read book Operational Aspects of Fiscal Policy in Oil Producing Countries written by Steven A. Barnett and published by . This book was released on 2006 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Oil-producing countries face challenges arising from the fact that oil revenue is exhaustible, volatile, and uncertain, and largely originates from abroad. Reflecting these challenges, the paper proposes some important general principles for the formulation and assessment of fiscal policy in these countries. The main findings can be summarized in some key guidelines: the non-oil balance should feature prominently in the formulation of fiscal policy; it should generally be adjusted gradually; the government should strive to accumulate substantial financial assets over the period of oil production; and, where necessary, strategies should aim at breaking procyclical fiscal responses to volatile oil prices.
