09.09.2011 - Australia: With resources cash flowing, let's put some in a piggy bank for future
The problem is, politicians much prefer spending over saving. Which is why a truly far-sighted government would put in place a more explicit mechanism to ensure some of the proceeds of the boom are banked in a sovereign wealth fund. By setting aside some portion of mining boom revenues in the good times, such a fund may be used to ''stabilise'' the macro-economy with spending during the bad times. The most exciting prospect would be the behavioural effect it could have on politicians..............................................Full Article: Source
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