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The Macroeconomics of Scaling Up Aid: Lessons from Recent Experience

Author/Editor: Berg, Andrew | Aiyar, Shekhar | Hussain, Mumtaz | Roache, Shaun K. | Mirzoev, Tokhir N. | Mahone, Amber
Published: April 12, 2007
Electronic Access: Link to Abstract

Summary: This study analyzes key issues associated with large increases in aid, including absorptive capacity, Dutch disease, and inflation. The authors develop a framework that emphasizes the different roles of monetary and fiscal policy and apply it to the recent experience of five countries: Ethiopia, Ghana, Mozambique, Tanzania, and Uganda. These countries have often found it difficult to coordinate monetary and fiscal policy in the face of conflicting objectives, notably to spend the aid money on domestic goods and to avoid excessive exchange rate appreciation.
 
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Series: Occasional Paper No. 253
Subject(s): Development assistance | Absorptive capacity | Inflation
 
English  
    Published:   April 12, 2007        
    ISBN/ISSN:   978-1-58906-591-8 / 0251-6365   Format:   Paper
    Stock No:   S253EA   Pages:   114
    Price:   US$28.00 (Academic Rate: US$30.00)
       
     
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