Buffie, Edward; Adam, Christopher; O'Connell, Stephen; … - In: European Economic Review 52 (2008) 8, pp. 1378-1395
We focus on the management of highly persistent shocks to aid flows in the presence of currency substitution by the domestic private sector. Such shocks have beneficent long-run effects, but when currency substitution is high they can produce dramatic macroeconomic management problems in the...