How to Adjust to a Large Fall in Commodity Prices

Resource-rich countries have to manage highly volatile commodity revenues. In periods of revenue booms there is a tendency for large spending scale-ups. When facing large and persistent reductions in commodity prices, some of these countries will need to adjust their budgets to the new reality. In many cases, overall surpluses turn into large fiscal deficits and borrowing costs tend to rise with the fall in commodity prices. This note discusses how to undertake large fiscal adjustments, which often tend to be protracted and with long-lasting impacts on growth. Consequently, the note also highlights how to better prepare for future booms and busts in commodity prices.
Publication date: September 2016
ISBN: 9781475536065
$4.99
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
English
Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

commodity prices , commodity exporters , resource-rich countries , commodity revenues , fiscal adjustment , fiscal deficits , borrowing costs , growth , commodity price booms , commodity price busts , public expenditure , oil producers , metal exporters , expenditure policy , capita

Summary