Inflation Indexation in Public Finances: A Global Dataset on Current Practices

This paper presents a new global dataset on current practices for four budget items in terms of indexation to the price level and other nominal variables. Compiling data from documents of select multilateral organizations, governments, and related literature as well as conducting a survey among IMF...

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Bibliographic Details
Main Author: Balasundharam, Vybhavi
Other Authors: Kayastha, Arika, Poplawski Ribeiro, Marcos
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2023
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Inflation Indexation in Public Finances: A Global Dataset on Current Practices  |c Vybhavi Balasundharam, Arika Kayastha, Marcos Poplawski Ribeiro 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2023 
300 |a 43 pages 
653 |a Economic & financial crises & disasters 
653 |a Inflation 
653 |a Economics 
653 |a Private Pensions 
653 |a Labour 
653 |a Social Security and Public Pensions 
653 |a Public finance & taxation 
653 |a Nonwage Labor Costs and Benefits 
653 |a Wages, Compensation, and Labor Costs: General 
653 |a Deflation 
653 |a Institutions: Design, Formation, and Operations 
653 |a Economics: General 
653 |a Fiscal Policy 
653 |a Informal sector 
653 |a Labor 
653 |a Economics of specific sectors 
653 |a Expenditure 
653 |a National Government Expenditures and Welfare Programs 
653 |a Price Level 
653 |a Currency crises 
653 |a Expenditures, Public 
653 |a Personal Finance -Taxation 
653 |a Pensions 
653 |a Prices 
653 |a Macroeconomics 
653 |a Wages 
653 |a Public Finance 
653 |a Income economics 
653 |a Income tax 
700 1 |a Kayastha, Arika 
700 1 |a Poplawski Ribeiro, Marcos 
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520 |a This paper presents a new global dataset on current practices for four budget items in terms of indexation to the price level and other nominal variables. Compiling data from documents of select multilateral organizations, governments, and related literature as well as conducting a survey among IMF country desks of 190 country-members, we show how indexation is internationally applied in (i) personal income tax brackets; (ii) pensions; (iii) social assistance programs; and (iv) public wages. The dataset shows that while indexation policies vary significantly across economies, some trends can be identified. For example, indexation is more common on pension and social grants than on taxes, and falls with the degree of economic development. We further discuss some applications of this new dataset. Those include an accounting exercise illustrating the impacts of indexation on fiscal outcomes during episodes of inflation surprises; and an analysis of the association between the overall degree of indexation combining the four budget items and inflation persistence