European Parliament Library

Cyclical Fiscal Rules for Oil-Exporting Countries, Stephen Snudden

Abstract
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
Table Of Contents
Cover; Contents; I. Introduction; II. Model and Calibration; 1. The Fiscal Rule; 2. Monetary Policy Rule; 3. Calibration; 4. Methodology; III. Results; 1. Temporary Demand and Supply Shocks to the Price of Oil; 1.1 Efficient Fiscal Policy to Temporary Increases in the Price of Oil; 1.2 Inflation and Output Volatility Tradeoff; 2. Implications under Alternative Structural Characteristics; 2.1. Private or Public Ownership; 2.2. Intensity of Oil in Output/Exports; 2.3. Foreign Ownership of Oil; 2.4. Composition of the Non-Oil Tax Revenues; 2.5. Oil Intensity in the Consumption Basket
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (46 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9780147551573

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