Since 2001 the following rule has guided withdrawals from the Fund (handlingsregelen): Transfers from the Fund to the central government budget shall, over time, follow the expected real return on the Fund. Significant emphasis is placed on evening out economic fluctuations to contribute to sound capacity utilisation and low unemployment. At the inception of the fiscal rule, the expected real rate of return of the Government Pension Fund Global was set at 4 percent. Based on analysis from the Thøgersen commission, the Mork commission, and Norges Bank, the expected real rate of return was reduced to 3 percent in the spring of 2017. The fiscal policy framework ensures preserving the real value of the Fund for the benefit of future generations. At the same time, the Fund and the fiscal rule insulates the budget from short-term fluctuations in petroleum revenue, and leaves space for fiscal policy to counteract economic downturns. In the event of large movements in the value of the … [Read more...] about The Norwegian Fiscal Policy Framework
Fiscal policy affects the economy
Kristian Rouz — Several central banks across the developed nations have been tightening their interest rate policies, taking steps to cut balance sheets, and curb bond buyouts, suggesting the improvements in economic growth prospects would bring back the normal pace of inflationary GDP growth. However, despite the positive inflationary developments in the US, the Eurozone, the UK, Russia, and even Japan, the global threat of stifling deflationary stagnation across major economies still lingers. READ MORE: US Tariffs to Have Limited Effect on China's GDP Growth, Exports — Moody's This is due to the still-tepid consumer demand, high levels of household indebtedness, slow growth in domestic non-financial sector investment, and the still-tight fiscal policies in the aforementioned economies. Against such a backdrop, several central banks have been testing unconventional new monetary … [Read more...] about Despite Int’l Central Bank Policy Normalization, Deflationary Pressures Persist
Want clear policy for trade across the Pak-Afghan border 0SHARES Share Tweet Email Want clear policy for trade across the Pak-Afghan border. PHOTO: FILE PESHAWAR: With businesses having suffered in Khyber-Pakhtunkhwa for decades owing to insecurity, businessmen and politicians have asked the federal government for specialised policies which promote manufacturing, trade and investment in the province “K-P’s economy has suffered due to instability and sore relationship with Afghanistan,” said Bushra Gohar, the Central Vice President of the Awami National Party (ANP) while talking speaking at a roundtable organised by the Sustainable Development Policy Institute (SDPI) in collaboration with the Centre for International Private Enterprise (CIPE) on Friday. Gohar expressed concern over the preference of policymakers for short-term fixes to long-standing structural issues such as low tax-to-GDP ratio, low investment and regional trade, and persistent … [Read more...] about K-P businessmen seek specialised policies to promote trade
Former top general Xu Caihou has become the highest-ranking Chinese official to be felled in president Xi's anti-corruption campaign. According to state-run news agency Xinhua, the 71-year-old - who retired in late 2012 from the decision-making Politburo - is accused of accepting bribes, both personally and through family members. With dozens of officials at or above ministerial level being investigated, some analysts argue that the anti-corruption campaign is also a vehicle of settling political scores and putting Xi's own men and reform-minded bureaucrats into key positions across the Communist Party. But whatever the reason behind it may be, the campaign's increasing momentum is also having an impact on the Chinese economy. Lu Ting, a Hong Kong-based economist at Bank of America Merrill Lynch, says in a DW interview the corruption crackdown is dis-incentivizing some officials from starting new projects and instilling fear on others of being perceived or charged as corrupt. DW: … [Read more...] about China’s corruption crackdown ‘is slowing the economy’
71-year-old Duterte, the longtime mayor of the southern city of Davao, has claimed victory in the presidential election held on Monday, May 9, after his opponents conceded defeat. His campaign for president in the past several months was characterized by provocative and profane rhetoric, but shed little light in terms of economic policies. This has given rise to uncertainty among firms and investors about the measures Duterte and his team are willing to take to keep economic growth on track while easing restrictions on doing business. "A string of highly controversial comments has unnerved investors, and his victory represents a step into the unknown," Gareth Leather, Asia economist at the UK-based economic research consultancy Capital Economics, said in a research note. The Philippines has been one of the fastest-expanding economies in the region in recent times, with growth averaging 6.2 percent in the last six years under the outgoing President Benigno Aquino. During this … [Read more...] about How will a Duterte presidency affect the Philippine economy?