1
$\begingroup$

Is it possible that a country could use the money in its sovereign wealth fund to invest in different country's Stock Market and use the dividends to finance its government thus increasing spending while keeping down taxes? Or could a country grant a corporate total monopoly on its domestic market and force it to compete in international markets to bring in foreign exchange and take a reasonable amount of dividend from the company to finance the government activities?

$\endgroup$
  • 1
    $\begingroup$ What do you mean by "can"? Of course it can do it, and the practice is very common (Renault in France, deutsche Post in Germany). The main question is whether it should do so, and under which circumstances. $\endgroup$ – Bertrand Jan 21 at 16:21
  • $\begingroup$ Dividends don't really matter. What you mean is that the government could use the returns of their portfolio to finance public spending - whether it comes from dividends or capital appreciation is not relevant $\endgroup$ – Hector Jan 21 at 18:24

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.