Buoyant Capital Spending and Worries over Real Appreciation : Cold Facts from Algeria /

The Government of Algeria has pursed a relatively expansionary fiscal policy in recent years, thanks to rising oil prices and revenues. The paper explores the potential effects of such a stance on real exchange rate and uncovers a relatively small appreciating effect of increased government capital...

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Detalles Bibliográficos
Autor Principal: Diallo, Oumar
Outros autores: Kpodar, Kangni, Loko, Boileau
Formato: Revista
Idioma:English
Publicado: Washington, D.C. : International Monetary Fund, 2007.
Series:IMF Working Papers; Working Paper ; No. 2007/286
Acceso en liña:Full text available on IMF
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245 1 0 |a Buoyant Capital Spending and Worries over Real Appreciation :   |b Cold Facts from Algeria /  |c Oumar Diallo, Boileau Loko, Kangni Kpodar. 
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520 3 |a The Government of Algeria has pursed a relatively expansionary fiscal policy in recent years, thanks to rising oil prices and revenues. The paper explores the potential effects of such a stance on real exchange rate and uncovers a relatively small appreciating effect of increased government capital expenditure. This is explained by the fact that a significant share of capital spending falls into tradable imported goods. However, the envisaged increase in capital spending, if well designed and implemented, might in the long-run translate into rising operations and maintenance expenditure-mostly nontradable goods-thereby causing a higher real appreciation. This implies that Algeria should carefully consider the implications of its public investment program on recurrent expenditure. 
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700 1 |a Kpodar, Kangni. 
700 1 |a Loko, Boileau. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2007/286 
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