The Leading eBooks Store Online 4,353,660 members ⚫ 1,442,818 ebooks

New to eBooks.com?

Learn more

Looking Beyond the Fiscal: Do Oil Funds Bring Macreconomic Stability?

Looking Beyond the Fiscal: Do Oil Funds Bring Macreconomic Stability? by Ghiath Shabsigh
Buy this eBook
US$ 9.00
(If any tax is payable it will be calculated and shown at checkout.)
Oil funds have become increasingly popular in oil exporting countries during the recent surge in oil prices. However, the literature on the contribution is small, tends to focus narrowly on their fiscal benefits, and concludes that they are redundant of such funds-in other words, that well designed fiscal management and policy are adequate substitutes for oil funds. This paper argues that a broader focus is needed in judging the effectiveness of such funds. We test whether oil funds help reduce macroeconomic volatility. The econometric estimation results from a 30-year panel data set of 15 countries with and without oil funds suggest that oil funds are associated with reduced volatility of broad money and prices and lower inflation. However, there is a statistically weak negative association between the presence of an oil fund and volatility of the real exchange rate.
International Monetary Fund; April 2007
18 pages; ISBN 9781452759203
Read online, or download in secure EPUB or secure PDF format
Title: Looking Beyond the Fiscal: Do Oil Funds Bring Macreconomic Stability?
Author: Ghiath Shabsigh; Nadeem Ilahi