fiscal role of price stabilization funds

the case of Côte d"Ivoire
  • 22 Pages
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by
International Monetary Fund , Washington, D.C
Statementprepared by Christian Schiller.
SeriesIMF working paper -- WP/88/26
ContributionsSchiller, Christian., International Monetary Fund. Fiscal Affairs Dept.
The Physical Object
Pagination22 p. --
ID Numbers
Open LibraryOL18245727M

Description fiscal role of price stabilization funds EPUB

Stabilization funds (or "rainy day funds") provides a unique opport unity to explore the role of fiscal policy as a means to prom ote stabilization. Using data that spans the entire history of. on stabilization funds, as reviewed in detail in the next section, the impact of stabilization funds is assessed with other potential factors of expenditure fluctuations taken into account.

Second, this paper makes good use of different indicators, specifications and estimation methods in analyzing the role of stabilization funds. Have Budget Stabilization Funds Reduced State Borrowing Costs.

National Tax Journal Vol. LVII, No. 4 December Abstract - Since budget stabilization funds have the potential to aid states in mitigating periods of fi scal stress, they may reduce the default risk associated with state-issued debt.

This paper explores. current fiscal stabilization fr amework and oil-related funds. It offers some suggestions for improving fiscal role of price stabilization funds book in the use of exceptional fisc fiscal role of price stabilization funds book revenues, in light of existing schemes in.

Historically Chile’s economy has been dominated by mineral products (mainly copper) as a source of exports and fiscal revenues. Copper prices and other commodity prices are often volatile.

Since the s the authorities have developed various mechanisms to cope with copper price shocks and dampen their effects on the business cycle. These mechanisms include a fiscal rule and a stabilization. BSFs have the following beneficial fiscal effects: Mitigate fiscal volatility and are considered a best practice across much of the literature.

Buoy state spending when revenues decline during an economic recession.

Download fiscal role of price stabilization funds FB2

One study found that the larger a state’s stabilization fund, the smaller its budget gap during recession years. This is. Budget stabilization funds (BSFs), also known as rainy day funds, allow states to set aside surplus revenue for times of unexpected revenue shortfall or budget deficit.

This fact sheet describes how BSF rules vary across states and reviews evidence on. A stabilization fund is a mechanism set up by a government or central bank to insulate the domestic economy from large influxes of revenue, as from commodities such as oil.

A primary motivation is maintaining a steady level of government revenue in the face of major commodity price fluctuations (hence the term "stabilization"), as well as the avoidance of inflation and associated atrophy of.

Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the Author: Leslie Kramer. Accordingly, the Government of India, on 27 Marchapproved the creation of a Price Stabilization Fund (PSF) with a corpus of Rs crores as a Central Sector Scheme, to support market interventions for price control of perishable agri-horticultural commodities during to Initially the fund was proposed to be used for.

In general, stabilization policies can be implemented with the aid of either monetary or fiscal policy. As to the role of monetary stabilization policy, let me take the example of the euro area.

In the euro area the Maastricht Treaty assigns to monetary policy the responsibility for maintaining price stability. ADVERTISEMENTS: Importance of Fiscal Policy for Economic Stabilisation. The economy does not always work smoothly.

There often occur fluctuations in the level of economic activity. At times the economy finds itself in the grip of recession when levels of national income, output and employment are far below their full potential levels. During reces­sion, there is [ ]. The objective of stabilization funds is to minimize the transmission of oil price volatility to fiscal policy by smoothing budgetary oil revenue.

Savings funds aim at addressing intergenerational concerns. Oil funds other than financing funds, however, ignore the fungibility of resources, and therefore do not effectively constrain expenditure. Fiscal policy is how Congress and other elected officials influence the economy using spending and taxation.

It is used in conjunction with the monetary policy implemented by central banks, and it influences the economy using the money supply and interest rates. 1  The objective of fiscal policy is to create healthy economic growth. Oil Funds.

Details fiscal role of price stabilization funds FB2

The basic framework of oil funds can be summarized as follows: 1 The overarching policy objectives of oil funds include macroeconomic stabilization (smoothing government expenditure in view of volatile and unpredictable oil revenue); financial saving (intergenerational equity); and/or enhancing transparency in the management of oil revenue and fiscal policy.

Countries with large oil resources can benefit substantially from them. However, despite their huge natural resources, many oil producers have had disappointing growth, widespread poverty, and continuing vulnerability to oil price and other external shocks.

Fiscal policy can play a central role indetermining the extent to which a country benefits from its oil wealth. This book brings together.

Fiscal policy refers to the use of government spending and tax policies to influence macroeconomic conditions, including aggregate demand, employment, inflation and economic growth.

Fiscal Oil and Natural Gas Production tax revenues triggered a $B transfer in November$B to ESF and $B to State Highway Fund • Ending fiscal ESF cash balance was $B with $B in investments. for a total balance of $B Fiscal Oil and Natural Gas Production tax revenues triggered a $B transfer in.

The Budget Stabilization Fund and the General Fund Reserve Requirement Introduction This paper provides a brief discussion of issues relating to budget stabilization funds.

In addition, survey data is presented on other state's "rainy day" funds. Further, the paper summarizes current law governing the budget stabilization fund in Size: 58KB.

Fiscal policy of the country has been playing an important role in raising the rate of capital formation in the country both in its public and private sectors. The gross domestic capital formation as per cent of GDP in India increased from per cent in to.

Fiscal Policy and Private Investment in Developing Countries Recent Evidence on Key Selected Issues Ajay Chhibber and Mansoor Dailami The key to sustained recovery in developing countries is the revival of private investment. This revival requires a coordi-nated set of credible policies -fiscal, exchange rate, tax, and public expenditure File Size: 1MB.

may be less of a trade-off between growth andstability than orthodox economics suggests. Issues of stabilization and growth cannot be separated. In general, the conduct of short-run stabilization policy has long-term effects. If the economy’s output is lowered 10 per cent today, the best estimate is that the output path will be 10 per centFile Size: KB.

We all remember (hopefully) from Econ that fiscal policy is used by the government to try to balance the economy's high or low activity. So, what actually is fiscal policy again.

TheStreet Author: Anne Sraders. In general, stabilisation policies can be implemented with the aid of either monetary or fiscal policy.

As to the role of monetary stabilisation policy, let me take the example of the euro area. In the euro area the Maastricht Treaty assigns to monetary policy. When price level falls - quantity of goods and services demanded increases Result when expansionary fiscal policy increases income Key role of AD in explaining short-run economic fluctuations The government should actively stimulate aggregate demand.

A sovereign wealth fund (SWF), sovereign investment fund, or social wealth fund is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity fund or hedge ign wealth funds invest globally.

Most SWFs are funded by revenues from commodity exports or from foreign. The State Fiscal Stabilization Fund (SFSF) program is a new one-time appropriation of $ billion under the American Recovery and Reinvestment Act of (ARRA).Of the amount appropriated, the U.

Department of Education will award governors approximately $ billion by formula under the SFSF program in exchange for a commitment to advance essential education.

by public funds and are connected with the fiscal system. Other specific characteristics It is then up to the state to perform its fiscal function (the public finance function) in perform the state stabilization functions (stabilization fiscal functions).File Size: 1MB.

Guidance on the State Fiscal Stabilization Fund Program U.S. Department of Education Washington, D.C. April Archived Information This guidance document has been rescinded by the U.S. Department of Education, and is. Countries with large oil resources can benefit substantially from them.

However, despite their huge natural resources, many oil producers have had disappointing growth, widespread poverty, and continuing vulnerability to oil price and other external shocks. Fiscal policy can play a central role indetermining the extent to which a country benefits from its oil wealth.

The Fiscal Rollercoaster In the five years that preceded the still lingering Great Recession, spending growth topped personal income growth in 37 states, including those with fiscal caps more extensive than the balanced budget rule, absent only in Vermont (PoterbaMerrifield ).innovations in Venezuela, aimed at temporarily separating stabilization and saving functions and combining an oil stabilization fund with other macrofiscal rules.

The chapter concludes with a comparative assessment of fiscal rules in the two countries. Economies with nonrenewable resources.the effects of fiscal policy shocks and of systematic fiscal policy, with time series or with cross-sectional methods, and their applicability to developing countries.

The second section surveys optimal fiscal policy in developing countries, by considering the role of the intertemporal government budget, and sustainability and by: