Fiscal Policy Response to Scaled-Up Aid
June 5, 2007
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Sound fiscal policies are critical for handling aid volatility as well as for making effective use of scaled-up aid and other flows. By easing resource constraints, these flows allow low-income countries (LICs) to increase spending aimed at enhancing growth and reducing poverty. Effective management of these policies, however, presents a host of macroeconomic challenges, many of them fiscal.
Subject: Development assistance, Fiscal policy, Use of Fund Resources
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