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.
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.
5.1 This chapter discusses the coverage, periodicity, and timeliness of three additional Special Data Dissemination Standard Plus (SDDS Plus) data categories under the external sector: coordinated portfolio investment survey (CPIS), coordinated direct investment survey (CDIS), and currency composition of official foreign exchange reserves (COFER). These data are important for monitoring cross-border inter-connectedness.
Mr. Nils O Maehle, Mr. Robert Dippelsman, and Mr. Adriaan M. Bloem
10.1. Work-in-progress concerns production that goes beyond one period. Measurement of such production poses the problem that a single process has to be split into separate periods. Because of the shorter accounting period, these difficulties are relatively more significant for quarterly national accounts (QNA) than for annual national accounts (ANA).
1.1 The International Monetary Fund (IMF) introduced the Data Standards Initiatives following the 1994–95 international financial crises for the purpose of promoting the transparency of economic and financial data. The Data Standards Initiatives consist of three tiers: