Original publisher: [Washington, D.C.]: Congress of the United States, Congressional Budget Office,  LC Number: HJ3833 .H36 2003 OCLC Number: (OCoLC)62477486 Subject: Investment of public funds -- United States. Excerpt: ...Evaluating and Accounting for Federal Investment in Corporate Stocks and Other Private Securities 7 political considerations may not have greatly interfered with the pursuit of market returns for many state funds. But whether that result would apply to potentially much larger federal investments - with a much greater capacity to influence cor-porate behavior and the economy - is unclear. Some countries have also built up large holdings of government-owned 10 private assets. Norway, for example, has accumulated net assets ( mainly foreign stocks and bonds ) totaling about half of its GDP in 2002. The nation's indepen-dent central bank manages those investments, which may lessen some of the con-cern about portfolio choices being affected by political considerations. In addition, because the country is relatively small, its actions would not be expected to affect world financial markets to any appreciable extent. Moreover, Norway's decision to invest mainly in foreign securities limits its potential scope for distorting the activities of its private sector. The United States, by contrast, is unlikely to have the option or inclination to invest solely in foreign stocks. Would Government Investment Improve Social Welfare? Some proponents of private investment argue that even if federal investing did not boost GDP, it could make some citizens better off by implicitly increasing their access to the returns of private securities and thereby improving the distribution of risks and returns in the economy. If, for example, some households do not partici-pate in the stock market now because of government policy or market failure, federal investing could give them that opportunity by proxy. ( For a discussion of reallocating the risks and return...Excerpt: ...Evaluating and Accounting for Federal Investment in Corporate Stocks and Other Private Securities 7 political considerations may not have greatly interfered with the pursuit of market returns for many state funds.
|Title||:||Evaluating and Accounting for Federal Investment in Corporate Stocks and Other Private Securities|
|Publisher||:||Books LLC - 2011-10|