01873cas a2200241 a 4500 AALejournalIMF005113 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451870008 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Constraints on the Design and Implementation of Monetary Policy in Oil Economies : The Case of Venezuela. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (47 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 By definition, fiscal dominance impedes the effective implementation of any monetary strategy aimed at controlling inflation. Economies that exhibit oil dominance-a situation in which oil exports largely affect the main macroeconomic indicators-may also exhibit fiscal dominance. However, in this case, the standard indicators used to gauge the presence of fiscal dominance may fail to give the appropriate signals. The main purpose of this paper is twofold: i) to present a simple framework to analyze fiscal dominance in oil exporting countries and ii) to test the hypothesis of the presence of oil dominance/fiscal dominance (OD/FD) in the case of Venezuela. Using VAR and VEC models it is possible to conclude that there is relevant evidence supporting the validity of the OD/FD hypothesis. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2008/142 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/142/001.2008.issue-142-en.xml IMF e-Library