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...

CONTENTS: Brief 1. Introduction / Eugenio Díaz-Bonilla and Sherman Robinson Brief 2. The Nature of Disagreements / Ravi Kanbur Brief 3. Growth and Poverty / Manohar Sharma, Sam Morley, and Eugenio Díaz-Bonilla Brief 4. Trade and Food Security / Eugenio Díaz-Bonilla and Marcelle Thomas Brief...

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...