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

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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Detaylı Bibliyografya
Yazar: Tressel, Thierry
Diğer Yazarlar: Prati, Alessandro
Materyal Türü: Dergi
Dil:English
Baskı/Yayın Bilgisi: Washington, D.C. : International Monetary Fund, 2006.
Seri Bilgileri:IMF Working Papers; Working Paper ; No. 2006/145
Online Erişim:Full text available on IMF
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100 1 |a Tressel, Thierry. 
245 1 0 |a Aid Volatility and Dutch Disease :   |b Is There a Role for Macroeconomic Policies? /  |c Thierry Tressel, Alessandro Prati. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2006. 
300 |a 1 online resource (65 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a 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 shocks, depresses exports. We also find that these effects can be mitigated through changes in net domestic assets of the central bank-a variable that reflects both monetary and fiscal policy. To characterize the optimal policy, we develop a general equilibrium model in which the capital account is closed and aid influences productivity growth through positive (public expenditure) and negative (Dutch disease) externalities. In this setting, macroeconomic policies permanently affect real variables and can improve welfare if donors do not distribute foreign aid optimally over time. 
538 |a Mode of access: Internet 
700 1 |a Prati, Alessandro. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2006/145 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2006/145/001.2006.issue-145-en.xml  |z IMF e-Library 

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