The Guidelines are designed to assist policymakers in considering reforms to strengthen the quality of their public debt management and reduce their country’s vulnerability to international financial shocks. Vulnerability is often greater for smaller and emerging market countries because their economies may be less diversified, have a smaller base of domestic financial savings and less developed financial systems, and be more susceptible to financial contagion through the relative magnitudes of capital flows. As a result, the Guidelines should be considered within a broader context of the factors and forces affecting a government’s liquidity more generally, and the management of its balance sheet. Governments often manage large foreign exchange reserves portfolios, their fiscal positions are frequently subject to real and monetary shocks, and they can have large exposures to contingent liabilities and to the consequences of poor balance sheet management in the private sector. However, irrespective of whether financial shocks originate within the domestic banking sector or from global financial contagion, prudent government debt management policies, along with sound macroeconomic and regulatory policies, are essential for containing the human and output costs associated with such shocks.
1.1 The government sector should be distinguished from the rest of the public sector and from the rest of the economy, and policy and management roles within the public sector should be clear and publicly disclosed.
13.1 The consumer price index (CPI) is one of the most important statistical series. Where statistics are categorized according to their potential impact, the CPI and its variants are always in the first rank. It follows therefore that it must be published, and otherwise disseminated, according to the policies, codes of practice and standards set for such data.
21.1 Chapter 15 to 20 cover theoretical issues relating to the choice of index number formula and are based on a simplifying assumption: that the aggregation is over the same i= 1,… n matched items in the two periods being compared. A comparison of prices between two periods requires the quality of each item to remain the same between the periods. Price collectors are asked to match items with the same quality specification in each month, so that only “pure” price changes are measured, not price changes tainted by changes in the quality of what is consumed. In practice, the quality of what is consumed does change. Furthermore, new goods and services appear on the market, and their relative price changes may differ from the price changes of existing ones. In addition, the expenditure share of these new goods and services may be substantial. Paragraphs 21.2 to 21.60 outline a theoretical framework which extends the definition of items to include their quality characteristics. It helps to provide a background for the practical implementation of quality adjustment, discussed in Chapter 7, and for ways of dealing with item substitution and new goods, covered in Chapter 8.
7.1 This chapter gives an overview of price collection issues. The focus of the chapter is on price collection for the survey pricing approach to export and import price indices (XMPIs). In Chapter 5, two sources of data for XMPIs were considered: administrative sources and survey sources. The former relies on established data collection procedures, primarily customs data. The design and implementation of such administrative data collection procedures are, to a large extent, not dictated by the needs of export and import price index number construction and thus are not the concern of this chapter. In Chapter 2, consideration was given to circumstances under which administrative sources might prove unreliable for tracking prices, and price surveys may be more fruitfully employed. Further sources of data, used for import price indices, are series of world market prices and mirror prices from other countries. Again these series are collected by other organizations for other purposes and are not the direct concern of this chapter.
180. Section III of the template covers contingent short-term net drains on foreign currency resources. As discussed in Chapter 3, net drains refer to outflows net of inflows. Contingent inflows and outflows simply refer to contractual obligations that give rise to potential or possible future additions or depletions of foreign currency assets. Contingent drains are by definition off-balance-sheet activities, since only actual assets and liabilities are to be reflected on balance sheets. Section III of the template differs from Section II because foreign currency flows to be reported in Section III are contingent upon exogenous events. As with predetermined foreign currency flows covered in Section II of the template, contingent flows can arise from positions with residents and nonresidents.