Céspedes, Luis Felipe, Parrado, Eric and Velasco, Andres 
ORCID: 0000-0003-0441-5062
(2014)
Fiscal rules and the management of natural resource revenues: the case of Chile.
Annual Review of Resource Economics, 6 (1).
pp. 105-132.
ISSN 1941-1340
Abstract
Over the past quarter-century, Chile has proven that the unthinkable is possible: A middle-income, natural resource-producing nation can have a fiscal policy that is both stable and sustainable. The core of this policy has been very simple: Act responsibly, design policy for the long run, and accumulate enough fiscal space so that fiscal policy can play a stabilizing role in the short run. The approach implies saving during periods of high copper prices and using those accumulated resources during a global economic crisis. Shifting from a procyclical to a mildly countercyclical fiscal stance has helped to smooth public investment and social expenditures across the cycle. One example of this countercyclical policy was Chile's reaction to the 2008-2009 world financial crisis. Thus, this article argues that Chile's approach contains ideas and practices that may be useful in the design of fiscal policies and institutions in other commodity-producing nations.
| Item Type: | Article |
|---|---|
| Additional Information: | © 2014 The Author |
| Divisions: | School of Public Policy ?? SCPP ?? |
| Subjects: | H Social Sciences > HG Finance |
| JEL classification: | E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook > E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H30 - General H - Public Economics > H6 - National Budget, Deficit, and Debt > H60 - General |
| Date Deposited: | 10 Oct 2019 14:54 |
| Last Modified: | 08 Nov 2024 17:45 |
| URI: | http://eprints.lse.ac.uk/id/eprint/102049 |
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