Cover IMF Working Papers
Commodity Booms and Government Expenditure Responses
Author: Mr. Sanjeev Gupta and Mr. Kenneth M. Miranda
Series:
IMF Working Papers
Volume/Issue:
Volume 1991: Issue 044
Language:
English
Publication Date:
01 May 1991
DOI:
https://doi.org/10.5089/9781451846362.001
ISBN:
9781451846362
ISSN:
1018-5941
Pages:
44
Keywords:
WP; exchange rate; commodity boom; current account; traded goods; price boom; world commodity cycle; commodity price bust; Real exchange rates; Commodity booms; Trade balance; Exports
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper develops a model incorporating asymmetric government expenditure behavior in response to a windfall revenue gain occasioned by a transitory commodity boom. The model is used to illustrate the transitional dynamics of a stylized economy during the boom period and the nature of the macroeconomic disequilibria which emerge in the post-boom period. Country case studies of Sri Lanka, Malaysia, and Kenya support the model’s predictions and the protracted nature of adjustment following the waning of the boom.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund

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