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Macro Research for Development: An IMF-DFID Collaboration


Last Updated: January 17, 2014

Conference on Macroeconomic Challenges Facing Low-Income Countries

The IMF and DFID will host a conference on January 30-31, 2014 at the IMF headquarters in Washington, DC. The central theme of the conference is macroeconomic challenges for LICs, and topics include capital flows to LICs, distributional impacts of fiscal policy, monetary policy in resource rich economies, financial market structure and stability, economic diversification, and growth and economic uncertainty. Many of the researchers are new to the field of macro LIC research. More information can be found on the conference website.

Topic 1: Monetary and Exchange Rate Policies in Low-Income Countries

Topic 2: Public Investment, Growth, and Debt Sustainability

  • DFID has a complementary project ‘Growth Research News' on micro-oriented research on investment-growth linkages
  • The paper by Buffie et al. (2012) was presented in:
    • the African Economic Conference 2012, held in Kigali (Rwanda) from October 30th to November 2nd

    • the International Growth Centre workshop on fiscal and monetary policy organized by the London School of Economics and held in London (UK) on November 2–3, 2012
  • A course on the Buffie et al. model and country applications was offered to Fund staff on February 25-26, in collaboration with the IMF Institute for Capacity Development
  • Giovanni Melina will present "A model-based Debt Sustainability Framework for Resource-Rich Low-Income Countries" (jointly written with Andrew Berg, Shu-Chun S. Yang and Luis-Felipe Zanna) at the 2013 CSAE conference, Oxford

Topic 3: Macroeconomic Management of Natural Resources

Topic 4. Macroeconomic Policies and Income Distribution

  • Adrian Peralta will present a paper at the 2013 CSAE conference, Oxford. In the paper, Adrian will discuss on how to develop a dynamic general equilibrium framework to study interconnections between macroeconomic policy, performance, and the distribution of income in low income countries (LICS). Low income economies are characterized by a large agricultural sector and lack of sectoral reallocation. These features bring about interesting tradeoffs to policy analysis. Government expenditure may have the largest impact on GDP when applied to sectors with high productivity, but it may also result in increased inequality due to reallocation costs.

Topic 5. Financial Deepening for Macroeconomic Stability and Sustained Growth

Topic 6. Growth through Diversification