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Macroeconomic Stabilization Fund

Macroeconomic Stabilization Fund Definition

Macroeconomic stabilization fund generally refers to a reserve fund established by  government to save the national economy from large fluctuations of revenue that is caused by price changes of the country's major commodity.


Additional meaning of Macroeconomic Stabilization Fund:

Also known as "FEM", this is a particularly is a fund set up by the country of Venezuela to stabilize the national cash flow generated from oil production. All revenue coming from oil production above a certain price per barrel is diverted into the fund and the difference is paid out if the price falls below this level.


RELATED TERMS
Stabilization fund
RELATED CATEGORIES
Economy
International




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