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dc.contributor.authorAiyar, Shekharen_US
dc.contributor.authorBerg, Andrewen_US
dc.contributor.authorHussain, Mumtazen_US
dc.date.accessioned2010-02-16en_US
dc.date.accessioned2011-04-26T07:42:39Z-
dc.date.available2011-04-26T07:42:39Z-
dc.date.issued2008en_US
dc.identifier.isbn978-92-9230-133-0en_US
dc.identifier.urihttp://hdl.handle.net/10419/45158-
dc.description.abstractThis paper investigates the macroeconomic challenges created by a surge in aid inflows. It develops an analytical framework for examining possible policy responses to increased aid, in terms of absorption and spending of aid - where the central bank controls absorption through monetary policy and the sale of foreign exchange and the fiscal authority controls spending. Different combinations of absorption and spending lead to different macroeconomic consequences. Evidence from five countries that recently experienced an aid surge (Ethiopia, Ghana, Tanzania, Mozambique and Uganda) shows no support for aidrelated real exchange rate appreciation in these countries, but indicates that the fear of Dutch disease played an important part in the policy reaction to aid surges. Fiscal and monetary authorities should coordinate their responses to an aid surge, because an uncoordinated response - typically when fiscal authority wants to spend aid while the central bank wants to avoid exchange rate appreciation - can have serious negative macroeconomic consequences.en_US
dc.language.isoengen_US
dc.publisherUNU-WIDER Helsinkien_US
dc.relation.ispartofseriesResearch paper / UNU-WIDER 2008.79en_US
dc.subject.jelO11en_US
dc.subject.jelO23en_US
dc.subject.jelE52en_US
dc.subject.jelF35en_US
dc.subject.ddc330en_US
dc.subject.keywordaiden_US
dc.subject.keywordexchange rateen_US
dc.subject.keywordaid absorptionen_US
dc.subject.keywordpolicyen_US
dc.subject.stwEntwicklungshilfeen_US
dc.subject.stwMakroökonomischer Einflussen_US
dc.subject.stwFinanzpolitiken_US
dc.subject.stwGeldpolitiken_US
dc.subject.stwAfrikaen_US
dc.titleThe macroeconomic management of increased aid: Policy lessons from recent experienceen_US
dc.typeWorking Paperen_US
dc.identifier.ppn589764055en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:WIDER Research Papers, United Nations University (UNU)

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