Share

A Possible Approach to Fiscal Rules in Small Islands — Incorporating Natural Disasters and Climate Change

2019-09-06 Business & Economics
Download A Possible Approach to Fiscal Rules in Small Islands — Incorporating Natural Disasters and Climate Change PDF Online Free

Author :
Release : 2019-09-06
Genre : Business & Economics
Kind : eBook
Book Rating : 041/5 ( reviews)

GET EBOOK


Book Synopsis A Possible Approach to Fiscal Rules in Small Islands — Incorporating Natural Disasters and Climate Change by : Ryota Nakatani

Download or read book A Possible Approach to Fiscal Rules in Small Islands — Incorporating Natural Disasters and Climate Change written by Ryota Nakatani. This book was released on 2019-09-06. Available in PDF, EPUB and Kindle. Book excerpt: A big challenge for the economic development of small island countries is dealing with external shocks. The Pacific Islands are vulnerable to natural disasters, climate change, commodity price changes, and uncertain donor grants. The question that arises is how should small developing countries formulate a fiscal policy to achieve economic stability and fiscal sustainability when prone to various shocks? We study how natural disasters affect long-term debt dynamics and propose fiscal policy rules that could help insulate the economy from such unexpected shocks. We propose fiscal rules to address these shocks and uncertainties using the example of Papua New Guinea. Our study finds the advantages of expenditure rules, especially a recurrent expenditure rule based on non-resource and non-grant revenue, interdependently determined by government debt and budget balance targets with expected disaster shocks. This paper contributes to the literature and policy dialogue by theoretically analyzing the impact of natural disasters on debt sustainability and proposing fiscal rules against natural disasters and climate changes. Our fiscal policy framework is practically applicable for many developing countries facing increasing frequency and impact of natural disasters and climate change. Our rules-based fiscal framework is crucial for sustainable and countercyclical macroeconomic policies to build resilience against devastating natural hazards.

Calibrating Fiscal Rules

2023-07-31 Business & Economics
Download Calibrating Fiscal Rules PDF Online Free

Author :
Release : 2023-07-31
Genre : Business & Economics
Kind : eBook
Book Rating : /5 ( reviews)

GET EBOOK


Book Synopsis Calibrating Fiscal Rules by : Olusegun Ayodele Akanbi

Download or read book Calibrating Fiscal Rules written by Olusegun Ayodele Akanbi. This book was released on 2023-07-31. Available in PDF, EPUB and Kindle. Book excerpt: This technical note assesses how large shocks from natural disasters are key source of vulnerabilities for public finances. It extends the IMF Fiscal Affairs Department calibration toolkit by developing a methodology to calibrate fiscal rules in the event of natural disaster shocks and the possibility of implementing climate adaptation and mitigation measures. The features incorporated in this technical note would allow the calibration of a prudent medium-term fiscal anchor as well as annual budgetary limits that ensure the sustainability of public finances. The note is accompanied by a set of toolkits that provides instructions on calibrating a medium-term debt anchor and corresponding operational rules in the presence of natural disaster risks, accounting for climate investment and other mitigation mechanisms.

Enhancing Macroeconomic Resilience to Natural Disasters and Climate Change in the Small States of the Pacific

2015-06-19 Nature
Download Enhancing Macroeconomic Resilience to Natural Disasters and Climate Change in the Small States of the Pacific PDF Online Free

Author :
Release : 2015-06-19
Genre : Nature
Kind : eBook
Book Rating : 077/5 ( reviews)

GET EBOOK


Book Synopsis Enhancing Macroeconomic Resilience to Natural Disasters and Climate Change in the Small States of the Pacific by : Ezequiel Cabezon

Download or read book Enhancing Macroeconomic Resilience to Natural Disasters and Climate Change in the Small States of the Pacific written by Ezequiel Cabezon. This book was released on 2015-06-19. Available in PDF, EPUB and Kindle. Book excerpt: Natural disasters and climate change are interrelated macro-critical issues affecting all Pacific small states to varying degrees. In addition to their devastating human costs, these events damage growth prospects and worsen countries’ fiscal positions. This is the first cross-country IMF study assessing the impact of natural disasters on growth in the Pacific islands as a group. A panel VAR analysis suggests that, for damage and losses equivalent to 1 percent of GDP, growth drops by 0.7 percentage point in the year of the disaster. We also find that, during 1980-2014, trend growth was 0.7 percentage point lower than it would have been without natural disasters. The paper also discusses a multi-pillar framework to enhance resilience to natural disasters at the national, regional, and multilateral levels and the importance of enhancing countries’ risk-management capacities. It highlights how this approach can provide a more strategic and less ad hoc framework for strengthening both ex ante and ex post resilience and what role the IMF can play.

Economic and Fiscal Impacts of Disasters in the Pacific

2018-04 Business & Economics
Download Economic and Fiscal Impacts of Disasters in the Pacific PDF Online Free

Author :
Release : 2018-04
Genre : Business & Economics
Kind : eBook
Book Rating : 187/5 ( reviews)

GET EBOOK


Book Synopsis Economic and Fiscal Impacts of Disasters in the Pacific by : Asian Development Bank

Download or read book Economic and Fiscal Impacts of Disasters in the Pacific written by Asian Development Bank. This book was released on 2018-04. Available in PDF, EPUB and Kindle. Book excerpt: Pacific island countries need to build their fiscal and economic resilience to climate change and natural disasters as these have lasting consequences on their livelihoods, economies, and fiscal balances. Climate change and natural disasters can have lasting consequences on livelihoods, economies, and fiscal balances-spanning immediate reconstruction costs and fiscal shocks to long-term halts in tourism and agriculture economies. Globally, the most exposed to these impacts are the Pacific island countries. The Asian Development Bank is working closely with its Pacific developing member countries to prepare for and respond to the effects of climate change and natural hazards. This publication examines the often-overlooked dimension of resilience planning-how to brace economies for shocks caused by climate change and hazard events. It analyzes the exposure and vulnerability of Pacific economies to disaster events and outlines key resources for building fiscal and economic resilience.

The Economic Impact of Natural Disasters in Pacific Island Countries: Adaptation and Preparedness

2018-05-10 Nature
Download The Economic Impact of Natural Disasters in Pacific Island Countries: Adaptation and Preparedness PDF Online Free

Author :
Release : 2018-05-10
Genre : Nature
Kind : eBook
Book Rating : 381/5 ( reviews)

GET EBOOK


Book Synopsis The Economic Impact of Natural Disasters in Pacific Island Countries: Adaptation and Preparedness by : Dongyeol Lee

Download or read book The Economic Impact of Natural Disasters in Pacific Island Countries: Adaptation and Preparedness written by Dongyeol Lee. This book was released on 2018-05-10. Available in PDF, EPUB and Kindle. Book excerpt: Pacific island countries are highly vulnerable to various natural disasters which are destructive, unpredictable and occur frequently. The frequency and scale of these shocks heightens the importance of medium-term economic and fiscal planning to minimize the adverse impact of disasters on economic development. This paper identifies the intensity of natural disasters for each country in the Pacific based on the distribution of damage and population affected by disasters, and estimates the impact of disasters on economic growth and international trade using a panel regression. The results show that “severe” disasters have a significant and negative impact on economic growth and lead to a deterioration of the fiscal and trade balance. We also find that the negative impact on growth is stronger for more intense disasters. Going further this paper proposes a simple and consistent method to adjust IMF staff’s economic projections and debt sustainability analysis for disaster shocks for the Pacific islands. Better incorporating the economic impact of natural disasters in the medium- and long-term economic planning would help policy makers improve fiscal policy decisions and to be better adapted and prepared for natural disasters.

You may also like...