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U.S. Department of Energy
Office of Scientific and Technical Information

Fiscal policy in oil-exporting countries, 1972-1978

Book ·
OSTI ID:5690592
It is shown that the conventional presentation of fiscal and monetary accounts is inappropriate for examining the impact of fiscal policy on the domestic economies of oil-exporting countries. Alternatively, this paper emphasizes the domestic budget deficit and its implications for domestic liquidity creation. Application of the alternative framework to six major oil-exporting countries for the period 1972-1978 provides strong support for the propositions that the domestic budget deficit is the primary determinant of movements in domestic liquidity and inflation and that fiscal policy must be the primary instrument of demand management.
OSTI ID:
5690592
Country of Publication:
United States
Language:
English