The Day After Tomorrow Designing an Optimal Fiscal Strategy for Libya

Libya is highly dependent on exhaustible and volatile hydrocarbon resources, which constitute the bulk of government revenues. Although resource wealth provides the means to promote socio-economic development, procyclical fiscal policies threaten macroeconomic stability as well as fiscal sustainabil...

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Bibliographic Details
Main Author: Caceres, Carlos
Other Authors: Cevik, Serhan, Committeri, Marco, Gracia, Borja
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2013
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a The Day After Tomorrow  |b Designing an Optimal Fiscal Strategy for Libya  |c Carlos Caceres, Serhan Cevik, Marco Committeri, Borja Gracia 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2013 
300 |a 32 pages 
651 4 |a Libya 
653 |a Fiscal stance 
653 |a Energy 
653 |a Fiscal rules 
653 |a Public finance & taxation 
653 |a Other Primary Products 
653 |a Environment 
653 |a National Deficit Surplus 
653 |a Fiscal Policy 
653 |a Structure, Scope, and Performance of Government 
653 |a Natural Resources 
653 |a Fiscal policy 
653 |a National Government Expenditures and Related Policies: General 
653 |a Expenditure 
653 |a Fiscal sustainability 
653 |a Cycles 
653 |a Economic Development: Agriculture 
653 |a Expenditures, Public 
653 |a Macroeconomics 
653 |a Business Fluctuations 
653 |a Public Finance 
700 1 |a Cevik, Serhan 
700 1 |a Committeri, Marco 
700 1 |a Gracia, Borja 
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520 |a Libya is highly dependent on exhaustible and volatile hydrocarbon resources, which constitute the bulk of government revenues. Although resource wealth provides the means to promote socio-economic development, procyclical fiscal policies threaten macroeconomic stability as well as fiscal sustainability and intergenerational equity. In three parts, this paper provides an assessment of the cyclically adjusted fiscal stance, analyzes fiscal sustainability according the permanent income framework, and simulates various fiscal policy rules with the objective of developing a rule-based fiscal strategy that would delink the economy from oil price fluctuations, improve the management of resource wealth, and safeguard macroeconomic stability