01979cas a2200253 a 4500 AALejournalIMF004454 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451866605 1018-5941 BD-DhAAL BD-DhAAL Shabsigh, Ghiath. Looking Beyond the Fiscal : Do Oil Funds Bring Macroeconomic Stability? / Ghiath Shabsigh, Nadeem Ilahi. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (18 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Oil funds have become increasingly popular in oil exporting countries during the recent surge in oil prices. However, the literature on the contribution is small, tends to focus narrowly on their fiscal benefits, and concludes that they are redundant of such funds-in other words, that well designed fiscal management and policy are adequate substitutes for oil funds. This paper argues that a broader focus is needed in judging the effectiveness of such funds. We test whether oil funds help reduce macroeconomic volatility. The econometric estimation results from a 30-year panel data set of 15 countries with and without oil funds suggest that oil funds are associated with reduced volatility of broad money and prices and lower inflation. However, there is a statistically weak negative association between the presence of an oil fund and volatility of the real exchange rate. Mode of access: Internet Ilahi, Nadeem. IMF Working Papers; Working Paper ; No. 2007/096 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/096/001.2007.issue-096-en.xml IMF e-Library