Strengthening the WAEMU Regional Fiscal Framework - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Strengthening the WAEMU Regional Fiscal Framework write by Mr. Antonio David. This book was released on 2022-03-04. Strengthening the WAEMU Regional Fiscal Framework available in PDF, EPUB and Kindle. This paper assesses the adequacy and effectiveness of the WAEMU fiscal framework along three pillars that have proven to effectively support fiscal discipline in monetary unions—common fiscal rules (including adequacy of numerical ceilings as well as elements of design and enforcement), shared public financial management systems, and coordination mechanisms for decentralized fiscal policies. We undertake a calibration of regional debt and fiscal deficit ceilings taking into account different macroeconomic tradeoffs and risks and conclude that numerical ceilings that prevailed before the suspension of the fiscal rules remain adequate and strike the right balance between growth and fiscal sustainability. The paper also proposes reform options to strengthen the WAEMU regional fiscal surveillance framework, with a view to more effectively supporting fiscal discipline.
Revamping the West African Economic and Monetary Union (WAEMU) Fiscal Framework
Revamping the West African Economic and Monetary Union (WAEMU) Fiscal Framework - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Revamping the West African Economic and Monetary Union (WAEMU) Fiscal Framework write by Can Sever. This book was released on 2023-04-26. Revamping the West African Economic and Monetary Union (WAEMU) Fiscal Framework available in PDF, EPUB and Kindle. This paper aims to provide a broad perspective on the WAEMU fiscal framework. Based on backward looking exercises and forward looking scenarios, it shows that (i) repeated fiscal slippages and historically large stock flow adjustments contributed to the surge in the WAEMU public debt, and (ii) stock flow adjustments can have significant effects on the WAEMU debt dynamics going forward. This paper also discusses that it is essential and urgent to reintroduce the fiscal rules and the Convergence Pact and to enhance the rules. Revamping the fiscal rules should focus on introducing a correction mechanism (which could contain surges in debt in the future) and an escape clause (which would enhance fiscal discipline and predictability), as well as capturing the extensive extra-budgetary and below-the-line operations and strengthening the enforcement mechanism. Any consideration to changing the fiscal deficit target should also encompass addressing extra-budgetary and below-the-line transactions (for example by changing the definition of the deficit). It is not appropriate to increase the debt ceiling.
Strengthening the West African Economic and Monetary Union
Strengthening the West African Economic and Monetary Union - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Strengthening the West African Economic and Monetary Union write by Olivier Basdevant. This book was released on 2015-10-23. Strengthening the West African Economic and Monetary Union available in PDF, EPUB and Kindle. West African Economic and Monetary Union (WAEMU) countries face a well-known dilemma between the need to provide shock-smoothing mechanisms and the lack of adequate mechanisms to do so. WAEMU countries are subject to frequent and, to a large extent, asymmetric shocks. They have remained poorly diversified and vulnerable to external shocks, such as changing weather conditions. In addition to limited shock-smoothing mechanisms at the regional level, WAEMU members’ ability to respond to shocks through national policies is also constrained by limited fiscal space and the need to preserve external stability—not only at the national level but also at the union level. In this context, developing a well-defined fiscal rule framework at the national level would help to build the necessary fiscal space for shock-smoothing. In addition, the development of specific shock-smoothing mechanisms—including a more developed and integrated financial sector—would also be critical. In addition, promoting financial development is also a challenge, which needs to be addressed in tandem with an adequate surveillance system. Some of these challenges have been faced by other monetary unions, such as the euro area.
West African Economic and Monetary Union (WAEMU)
West African Economic and Monetary Union (WAEMU) - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook West African Economic and Monetary Union (WAEMU) write by International Monetary Fund. African Dept.. This book was released on 2019-03-29. West African Economic and Monetary Union (WAEMU) available in PDF, EPUB and Kindle. This Selected Issues paper reviews West African Economic and Monetary Union’s (WAEMU) regional macroeconomic surveillance framework to control all sources of debt accumulation and ensure debt sustainability. WAEMU’s regional surveillance framework aims at ensuring the sustainability of national fiscal policies and their consistency with the common monetary policy. While fiscal deficits have been the main driver of public debt across WAEMU member countries, the size of residual factors has varied greatly among these countries. The WAEMU Macroeconomic Surveillance Framework would benefit from adjustments to more effectively set the region’s public debt on a sustainable path. In addition, beyond adhering to the WAEMU fiscal deficit rule, member countries must curb below-the-budget-line operations. This would require improved monitoring of fiscal risks and the building of adequate budget provisions to address such risks before they materialize. Improved Treasury practices would also help eliminate the recourse to pre-financing arrangements and tighten control over expenditure. Public dissemination of the WAEMU progress report and strengthened peer-to-peer learning among member countries could improve the momentum for reforms.
West African Economic and Monetary Union (WAEMU)
West African Economic and Monetary Union (WAEMU) - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook West African Economic and Monetary Union (WAEMU) write by International Monetary Fund. African Dept.. This book was released on 2013-04-03. West African Economic and Monetary Union (WAEMU) available in PDF, EPUB and Kindle. Military coups that occurred in Guinea-Bissau and Mali caused economic disruption in the WAEMU countries. Regional policies have been in line with the recommendations, and growth is expected to remain robust, risks are on the downside, and the macroeconomic policy is appropriate. Preserving debt sustainability and stability of the Union in the medium term requires better coordination of fiscal policies. Development of the financial system, and strengthening of the regulatory and supervisory framework is necessary to address existing and new risks.
