This article contributes to the ongoing debate on the macroeconomic management of large aid inflows to low-income countries by analysing lessons drawn from Uganda, where the fiscal deficit before grants, which was largely aid-funded, doubled to over 12% of GDP in the early 2000s. It focuses on...

This paper revisits the debate over the most appropriate exchange-rate regime for low-income countries. The debate revolves around: the effect of the exchange-rate regime on macroeconomic management, particularly inflation; the links between the exchange-rate regime and vulnerability to crisis...