Cover IMF Working Papers
Policy Coordination in Fiscal Federalism: Drawing Lessons From the Dubai Debt Crisis
Author:
Mr. Serhan Cevik
Search for other papers by Mr. Serhan Cevik in
Current site
Google ScholarClose
https://orcid.org/0000-0002-2373-2023
Series:
IMF Working Papers
Volume/Issue:
Volume 2011: Issue 147
Language:
English
Publication Date:
01 Jun 2011
DOI:
https://doi.org/10.5089/9781455269457.001
ISBN:
9781455269457
ISSN:
1018-5941
Pages:
23
Keywords:
WP; emirate government level; budget deficit; potential GDP; debt brake mechanism; federal government; fiscal policy stance; U.A.E. economy; Fiscal imbalances; business cycles; cyclically-adjusted budget balance; debt sustainability; fiscal federalism; contingent liabilities; statement of fiscal risks; emirate level; U.A.E. constitution; Dubai debt crisis; emirates GDP; net financing need; Fiscal stance; Fiscal sustainability; Global
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.
Download PDF (1.3 MB) Download Epub
Using the cyclically adjusted non-hydrocarbon primary balance, this paper investigates the evolution of the fiscal policy stance in the United Arab Emirates at consolidated and sub-national levels in the run-up and after the crisis. The empirical findings show that procyclical fiscal policies prior to the crisis reinforced the financial sector cycle, exacerbated the economic upswing, and thereby contributed to the build-up of macro-financial vulnerabilities. The paper also sets out policy lessons to develop a rule-based fiscal framework that would help strengthen fiscal policy coordination between the various layers of government and ensure long-term fiscal sustainability and a more equitable intergenerational distribution of wealth.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2011: Issue 147