Aid Volatility and Dutch Disease : Is There a Role for Macroeconomic Policies? /

This paper studies how macroeconomic policies can help offset two unintended and undesirable features of foreign aid: its volatility and Dutch disease. We present evidence that aid volatility augments trade balance volatility and that foreign aid, with the important exception of years of adverse sho...

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Bibliographic Details
Main Author: Tressel, Thierry
Other Authors: Prati, Alessandro
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2006.
Series:IMF Working Papers; Working Paper ; No. 2006/145
Online Access:Full text available on IMF