How Did Fiscal Rules Hold Up in the Commodity Price Crash?
- David Mihalyi and Liliana Fernández
- Jun 2018
- Natural Resources Governance Institute (NRGI)
- International
This research looks at the evidence and experience of 34 countries having fiscal rules and assessed in the Resource Governance Index from 2015 to 2016. Given that commodity prices tumbled in 2014, and so the two subsequent years were characterized by important budget challenges in many resource-exporting countries, our research provides insight into how these fiscal rules performed under serious economic shocks. This report does not seek to evaluate the economic impact of having fiscal rules or their ability to combat economic volatility because these questions are difficult to measure in a robust way in these early stages. Instead, we review the degree of compliance and the role oversight actors played in ensuring compliance. This previously under-researched area is essential for creating policy recommendations for the development and implementation of fiscal rules.
