Quasi-Fiscal Operations of Public Financial Institutions
October 24, 1996
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Central banks and other public financial institutions act as agents of fiscal policy in many countries. Their "quasi-fiscal" operations and activities can affect the overall public sector balance without affecting the budget deficit as conventionally measured, may also have important allocative effects, and increase the effective size of the public sector. This paper analyzes the macroeconomic and financial effects of such quasi-fiscal activities, as well as the taxes, subsidies, and other expenditures that such activities introduce outside the budget. Measurement and accounting issues are addressed, and policy recommendations are offered.
Subject: Banking, Central banks, Commercial banks, Credit, Deposit insurance, Economic sectors, Exchange rates, Financial crises, Financial institutions, Foreign exchange, Loans, Money, Public sector, Quasi-fiscal operations
Keywords: Caribbean, Central Africa, central bank, central bank lending, central bank loss, central bank rescue operations, Commercial banks, Credit, Deposit insurance, Eastern Europe, exchange guarantee, Exchange rates, income statement, Loans, market, net loss, OP, PFIs, Public sector, QFAs, QFAs of central banks, Quasi-fiscal operations, West Africa
Pages:
45
Volume:
1996
DOI:
Issue:
008
Series:
Occasional Paper No. 1996/008
Stock No:
S142EA0000000
ISBN:
9781557755834
ISSN:
0251-6365
