After the decline in oil prices, many oil exporters face the need to improve their external balances. Special characteristics of oil exporters make the exchange rate an ineffective instrument for this purpose and give fiscal policy a sizeable role. These conclusions are supported by regression analysis of the determinants of the current account balance and of the trade balance. The results show little or no relationship with the exchange rate and, especially for the less diversified oil exporters (including the Gulf Cooperation Council), a strong relationship with the fiscal balance or government spending
Notes
"June 2016."
At head of title: "Middle East and Central Asia Department."
Bibliography
Includes bibliographical references (pages 42-45)
Notes
Description based on online resource; title from pdf title page (IMF.org Web site, viewed July 13, 2016)
