Russian Federation: Selected Issues

International Monetary Fund

No 2015/212, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues paper analyzes Russia’s fiscal framework and the oil-price shock. Russia has relied heavily on its abundant natural resource wealth to finance fiscal deficits since the global financial crisis in 2008–09. The pace of adjustment of the oil-price benchmark could be increased by including future prices in its calculation. Although converting oil revenues using a backward-looking average of the exchange rate could also lead to a more rapid fiscal adjustment, it also implies additional technical and communication challenges. In addition, the fiscal anchor could be more ambitious to safeguard intergenerational equity. Expressing the fiscal rule in terms of a minimum “structural" balance could promote greater savings.

Keywords: oil-price benchmark; depreciation volatility; Russia lag; resource wealth; Russia's FI index; pass-through from depreciation; Exchange rate pass-through; Fiscal rules; Oil prices; Financial sector development; Inflation; Global; Central Asia; Africa; Central and Eastern Europe (search for similar items in EconPapers)
Pages: 44
Date: 2015-08-03
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Citations: View citations in EconPapers (3)

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