Chile's Structural Fiscal Surplus Rule.

Chile's Structural Fiscal Surplus Rule.

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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Bibliographic Details
Main Author: Kumhof, Michael
Other Authors: Laxton, Douglas
Format: eBook
Language:English
Published: Washington : International Monetary Fund, 2009.
Series:IMF Working Papers.
Subjects:
Fiscal policy > Chile.
Finance, Public > Chile.
Finance, Public
Fiscal policy
Chile
Online Access:Click for online access
Description
Summary: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.
Physical Description:1 online resource (56 pages)
ISBN:9781451916706
1451916701
Source of Description, Etc. Note:Print version record.

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