Chile's Structural Fiscal Surplus Rule : A Model-Based Evaluation /

The paper analyzes Chile's structural balance fiscal rule in the face of copper price shocks originating in foreign copper demand. It uses a version of the IMF's Global Integrated Monetary and Fiscal Model (GIMF) that includes a copper sector. Two results are obtained. First, Chile's...

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Glavni avtor: Kumhof, Michael
Drugi avtorji: Laxton, Douglas
Format: Revija
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 2009.
Serija:IMF Working Papers; Working Paper ; No. 2009/088
Online dostop:Full text available on IMF
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245 1 0 |a Chile's Structural Fiscal Surplus Rule :   |b A Model-Based Evaluation /  |c Michael Kumhof, Douglas Laxton. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2009. 
300 |a 1 online resource (54 pages) 
490 1 |a IMF Working Papers 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a The paper analyzes Chile's structural balance fiscal rule in the face of copper price shocks originating in foreign copper demand. It uses a version of the IMF's Global Integrated Monetary and Fiscal Model (GIMF) that includes a copper sector. Two results are obtained. First, Chile's current fiscal rule performs well if the policymaker puts a small weight on output volatility (relative to inflation volatility) in his/her objective function. A more aggressive countercyclical fiscal rule can attain lower output volatility, but there is a trade-off with (somewhat) higher inflation volatility and (much) higher volatility of fiscal variables. Second, given its current stock of government assets, Chile's adoption of a 0.5% surplus target starting in 2008 is desirable from a business cycle perspective. This is because the earlier 1% target would have required significant further asset accumulation that could only have been accomplished at the expense of greater volatility in fiscal instruments and therefore in GDP. 
538 |a Mode of access: Internet 
700 1 |a Laxton, Douglas. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2009/088 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2009/088/001.2009.issue-088-en.xml  |z IMF e-Library