Series: IMF Working Papers
Author(s): Thierry Tressel , and Alessandro Prati
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 June 2006
Keywords: Aid effectiveness, real exchange rate, central bank, current account, money demand, Macroeconomic Analyses of Economic Development, Fiscal and Monetary Policy in Development, Economic Growth And Aggregate Productivity,
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...