Constraints on the Design and Implementation of Monetary Policy in Oil Economies : The Case of Venezuela.
Title:
Constraints on the Design and Implementation of Monetary Policy in Oil Economies : The Case of Venezuela.
Author:
Fund, International Monetary.
ISBN:
9781451914535
Personal Author:
Physical Description:
1 online resource (49 pages)
Series:
IMF Working Papers
Contents:
Contents -- I. Introduction -- II. Fiscal Dominance in Oil Economies -- A. Oil Dominance and Fiscal Dominance: Analytical Framework -- B. Transmission Mechanism -- III. Oil Economies: Some Stylized Facts -- IV. Oil Dominance in Venezuela -- A. Oil Dominance/Fiscal Dominance: Simple Correlations -- B. Oil Dominance/Fiscal Dominance Hypothesis for Venezuela -- V. Conclusions -- Tables -- 1. Exchange Rate and Nominal Anchor for Major OCD in 2005 -- 2. Venezuela: Selected Indicators -- 3. Venezuela: Exchange Rate System, 1964-2007 -- Figures -- 1. OEC: Average Rate of Nominal Growth of Monetary Base and Changes in Oil Prices -- 2. OEC: Primary Balance of the General Government -- 3. Change in the CPI-OEC and Oil Prices, 1979-2005 -- 4. Selected OEC: Average Δ% Change in the CPI, 1999-2005 Ranked by Xo/XT -- 5. Oil Prices (/B- Venezuelan Basket), and Ratio Xo/XT, 960-2005 -- 6. Venezuela: Oil in the Economy -- 7. Venezuela: Rates of Growth of Real GDP, CPI, and Oil Prices -- 8. Venezuela: Ratios of Central Bank Instruments of Monetary Control (CBIMC) -- Appendices -- I. Oil Exporting Countries-Selected Indicators -- II. Management of Oil Resources: Oil Funds and International Reserves -- III. Descriptive Statistics and Pair-Wise Correlations for Selected Economic Indicators -- Appendix Tables -- A.I.1. Classification and Evluation of Oil Exporting Countries, based on the Ratio of Oil Exports to GDP -- A.I.2. Oil Exporting Countries: Selected Indicators -- A.I.3. Oil Exporting Countries: Selected Indicators -- A.I.4. Oil Exporting Countries: Selected Indicators -- A.II.1. Venezuela: Macroeconomic Stabilization Fund (FEM and Investment Fund for Macroeconomic Stabilization (FIEM) -- A.II.2. Central Bank of Venezuela-Balance Sheet -- Appendix Figures.
A.III.1. Venezuela: Changes in Oil Prices, Oil Exports, Fiscal Revenue, and Primary Expenditures, 1960-2005 -- A.III.2. Venezuela: Change in Primary Fiscal Expenditure, Non-Oil GDP Inflation, and Monetary Base, 1960-2005 -- A.III.3. Venezuela: Five-Year Moving Variences of Rates of Growth of Selected Indicators, 1965-2005 -- A.III.4. Venezuela: Overall Fiscal Balance and Domestic Primary Deficit (Percentage of GDP) -- References.
Abstract:
By definition, fiscal dominance impedes the effective implementation of any monetary strategy aimed at controlling inflation. Economies that exhibit oil dominance-a situation in which oil exports largely affect the main macroeconomic indicators-may also exhibit fiscal dominance. However, in this case, the standard indicators used to gauge the presence of fiscal dominance may fail to give the appropriate signals. The main purpose of this paper is twofold: i) to present a simple framework to analyze fiscal dominance in oil exporting countries and ii) to test the hypothesis of the presence of oil dominance/fiscal dominance (OD/FD) in the case of Venezuela. Using VAR and VEC models it is possible to conclude that there is relevant evidence supporting the validity of the OD/FD hypothesis.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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