Narrow Your Choices

Refine By Topic

Refine By Series

Refine By Language

Refine By Date

—

Refine By IMF Taxonomy

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Middle East and Central Asia > Mauritania, Islamic Republic of

You are looking at 1 - 2 of 2 items for :

  • Type: Journal Issue x
  • Consumption; Economics x
Clear All Modify Search
Cover IMF Working Papers
Optimal Reserves in Financially Closed Economies
Mr. Olivier D Jeanne
and
Mr. Damiano Sandri
Financially closed economies insure themselves against current-account shocks using international reserves. We characterize the optimal management of reserves using an open-economy model of precautionary savings and emphasize several results. First, the welfare-based opportunity cost of reserves differs from the measures often used by practitioners. Second, under plausible calibrations the model is consistent with the rule of thumb that reserves should be close to three months of imports. Third, simple linear rules can capture most of the welfare gains from optimal reserve management. Fourth, policymakers should place more emphasis on how to use reserves in response to shocks than on the reserve target itself.
Keywords:
WP; interest rate; opportunity cost; open economy; Official reserves; current account; precautionary savings; carry cost; cost-benefit approach; real rate of interest; welfare cost; level of reserve; Reserve positions; Imports; Reserves management; Exports; Income; Global
Cover IMF Staff Country Reports
Islamic Republic of Mauritania: Selected Issues Paper
International Monetary Fund. Middle East and Central Asia Dept.
This Selected Issues paper analyzes various aspects of fiscal framework in the Republic of Mauritania. Mauritania needs to avoid pro-cyclical fiscal policies and adopt rules that guide medium-term fiscal sustainability. Fiscal policy has been responsible and focused on fiscal consolidation, but important challenges lie ahead linked to price volatility, exhaustibility of resources, and effective use of resources. Mauritania has important natural resource wealth, and its fiscal policy is shaped by considerations resulting from its reliance on resource revenues. Prospects for price shocks in the short term and significant mining expansion in the long term could pose significant challenges to fiscal policy management. The analysis of fiscal framework options reveals that a fiscal rule which targets a nonresource primary balance for long-term sustainability, designed to allow some frontloading of public spending on productive investment, would be appropriate for Mauritania under the assumption of a finite resource horizon. A fiscal rule targeting a structural resource balance would be appropriate in the scenario of long-lasting resources, possible under the assumption of favorable developments in the global commodity markets.
Keywords:
ISCR; CR; investment; Mauritania; price; resource; investment path; banking sector reform; resource revenue; export diversification; investment plan; labor force; Public investment spending; Productivity; Fiscal governance; Global; North Africa