Ethiopia enjoyed remarkable economic growth from 2004/05 to 2008/09, in large part due to increases in foreign transfers and capital inflows combined with expanded domestic credit to fund major increases in private and public investments in infrastructure and housing. However, this rapid growth...

In spite of remarkable growth in Ethiopia’s agricultural production and overall real incomes (GDP/capita) from 2004/05 to 2008/09, prices of major cereals (teff, maize, wheat and sorghum) have fluctuated sharply in both nominal and real terms. International prices of cereals also...

Beginning in April 2008, lack of access to foreign exchange effectively stopped private sector wheat imports. Government imports and subsidized sales to millers and households in late 2008, subsequently increased domestic supply and lowered market wheat prices, though market prices remained...

This paper examines macro-economic developments in Ethiopia between 2004/05 and 2008/09, focusing on the external accounts and the real exchange rate. Simulations using a Computable General Equilibrium (CGE) model of Ethiopia's economy show that, compared to a policy of foreign exchange...