This paper examines the fiscal policy challenges for oil-centred economies over the past few years in general, focusing on developments in four major oil-exporting countries in EU neighbouring regions: Algeria, Nigeria, Russia and Saudi Arabia

With the fiscal theory of the price level (FTPL), Leeper-Sims-Woodford (LSW) argued that the government budget constraint plays a key role in determining the price level. Indeed, there could even be a dispute vis-à-vis the role of monetary policy in the formation of the price level. Apart from...