Cover Technical Notes and Manuals
Buy Book in Print
Calibrating Fiscal Rules: A Consideration of Natural Disaster Risks
Author:
Olusegun Ayodele Akanbi https://isni.org/isni/0000000404811396 International Monetary Fund

Search for other papers by Olusegun Ayodele Akanbi in
Current site
Google Scholar Close
,
William Gbohoui https://isni.org/isni/0000000404811396 International Monetary Fund

Search for other papers by William Gbohoui in
Current site
Google Scholar Close
, and
Mr. Waikei R Lam
Search for other papers by Mr. Waikei R Lam in
Current site
Google Scholar Close
Series:
Technical Notes and Manuals
Volume/Issue:
Volume 2023: Issue 002
Language:
English
Publication Date:
31 Jul 2023
DOI:
https://doi.org/10.5089/9798400237508.005
ISBN:
9798400237508
ISSN:
2075-8669
Pages:
22
Keywords:
Fiscal rules; natural disaster; debt anchor; debt limit; climate adaptation investment; fiscal risks; mitigation; climate resilience; natural disaster risk; climate investment; natural disaster shock; IMF Library; Natural disasters; Climate finance; Fiscal stance; Fiscal consolidation; Caribbean
Legal-disclaimer:
This Technical Guidance Note should not be reported as representing the views of the IMF. The views expressed in this paper are those of the authors and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (3 MB) Download Epub
This technical note assesses how large shocks from natural disasters are key source of vulnerabilities for public finances. It extends the IMF Fiscal Affairs Department calibration toolkit by developing a methodology to calibrate fiscal rules in the event of natural disaster shocks and the possibility of implementing climate adaptation and mitigation measures. The features incorporated in this technical note would allow the calibration of a prudent medium-term fiscal anchor as well as annual budgetary limits that ensure the sustainability of public finances. The note is accompanied by a set of toolkits that provides instructions on calibrating a medium-term debt anchor and corresponding operational rules in the presence of natural disaster risks, accounting for climate investment and other mitigation mechanisms.
  • Collapse
  • Expand
Cover Technical Notes and Manuals
Technical Notes and Manuals
ISSN:
2075-8669
Publisher:
International Monetary Fund