- Source: Stabilization fund
A stabilization fund is a mechanism set up by a government or central bank to insulate the domestic economy from large influxes of revenue, as from commodities such as oil. A primary motivation is maintaining a steady level of government revenue in the face of major commodity price fluctuations (hence the term "stabilization"), as well as the avoidance of inflation and associated atrophy of other domestic sectors (Dutch disease). This generally involves the purchase of foreign denominated debt, especially if the goal is to prevent overheating in the domestic economy. The notion may overlap with sovereign wealth fund.
Examples of such funds include:
Stabilization Fund of the Russian Federation
Petroleum Fund of Norway (SPF)
Chile's Copper Stabilization Fund (CSF)
Oman's State General Reserve Fund (SGRF)
Kuwait's Reserve Fund for Future Generations (RFFG)
Papua New Guinea's Mineral Resources Stabilization Fund (MRSF)
Venezuela's Macroeconomic Stabilization Fund (MSF)
UAE Abu Dhabi Fund for Development
Central Bank of Iran's Oil Stabilization Fund
Stabilization funds do not necessarily have to revolve around large commodity revenue. Such national funds might instead seek to influence currency exchange rates without affecting domestic money supply. Such examples include:
European Financial Stability Facility
United Kingdom's Exchange Equalisation Account
United States's Exchange Stabilization Fund
See also
Rainy day fund
Sovereign wealth fund
External links
IMF registered stabilization funds
Kata Kunci Pencarian:
- Badan Intelijen Pusat
- Boediono
- Krisis Perbankan Amerika Serikat 2023
- Troubled Asset Relief Program
- Organisasi Internasional untuk Migrasi
- Sistem Perdagangan Emisi Uni Eropa
- Stabilization fund
- Exchange Stabilization Fund
- Sovereign wealth fund
- Troubled Asset Relief Program
- Russian National Wealth Fund
- Mining in Chile
- List of countries by sovereign wealth funds
- Stabilization Fund of the Russian Federation
- Rainy day fund
- Capital Market Stabilization Fund
