This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

A golden rule for Russia? How a rule-based fiscal policy can allow a smooth adjustment to the new terms of trade

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Christian Gianella ()

Additional information is available for the following registered author(s):

Abstract

The Russian economy continues to grow strongly, buoyed by rising terms of trade, which, in turn, are supporting a boom in domestic consumption. This paper addresses the challenge that the adjustment to sustained high oil prices poses for macroeconomic management. It first examines the impact of rising terms of trade on the domestic economy, particularly with respect to exchange-rate appreciation, competitiveness and inflation. It then considers the role of monetary and fiscal policies in ensuring a smooth adjustment to the higher terms of trade. The paper argues that fiscal policy should be the primary instrument for tackling this challenge. It therefore focuses on the potential role of a fiscal rule in insulating the economy and the budget from commodity-price fluctuations, and on the management of windfall oil and gas revenues accumulated in the fiscal Stabilisation Fund.

Une règle d’or pour la Russie? Comment une politique budgétaire fondée sur des règles peut permettre un ajustement en douceur aux nouveaux termes de l’échange.
L’économie russe continue de croître à un rythme élevé, bénéficiant d’une amélioration prolongée des termes de l’échange qui alimente la forte hausse de la consommation intérieure. Cette étude analyse le défi que l’adaptation à des prix du pétrole durablement élevés suscite en termes de gestion macroéconomique. Il examine d’abord les conséquences de l’augmentation des termes de l’échange sur l’économie nationale, en particulier son impact sur l’appréciation du taux de change, la compétitivité et l’inflation. Il analyse ensuite le rôle que les politiques monétaire et budgétaire peuvent jouer pour garantir un ajustement en douceur à cette augmentation des termes de l’échange. Le chapitre conclut que la politique budgétaire devrait être l’instrument à privilégier pour réaliser cet ajustement. Enfin, l’étude considère le rôle que peuvent potentiellement jouer des règles budgétaires pour mettre l’économie et le budget à l’abri des fluctuations des prix des matières premières, et se concentre sur la gestion des recettes pétrolières et gazières exceptionnelles transférées dans le Fonds de stabilisation.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sourceoecd.org/10.1787/328835227746
File Format: text/html
File Function:
Download Restriction: no

Publisher Info
Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 537.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length:
Date of creation: 15 Jan 2007
Date of revision:
Handle: RePEc:oec:ecoaaa:537-en

Contact details of provider:
Postal: 2 rue Andre Pascal, 75775 Paris Cedex 16
Email:
Web page: http://www.oecd.org
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: ().

Related research
Keywords: fiscal policy politique budgétaire monetary policy politique monétaire Russia Russie dutch disease syndrome néerlandais macroeconomic management gestion macroéconomique

Find related papers by JEL classification:
E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization
O23 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

This paper has been announced in the following NEP Reports:

Statistics
Access and download statistics

Did you know? Citation analysis on IDEAS includes online papers that are freely accessible and whose text could be automatically analyzed, currently about 150000 papers.

This page was last updated on 2008-11-17.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.