This paper studies the spending and absorption of aid in PRGF-supported programs, verifies whether the use aid is programmed to be smoothed over time, and analyzes how considerations about macroeconomic stability influence the programmed use of aid. It finds that PRGF-supported programs allow...

We develop a simple macroeconomic model that assesses the effects of higher foreign aid on output growth and other macroeconomic variables, including the real exchange rate. The model is easily tractable and requires estimation of only a few basic parameters. It takes into account the impact of...

We analyze the growth impact of official development assistance to developing countries. Our approach is different from that of previous studies in two major ways. First, we disentangle the effects of two kinds of aid: developmental and non-developmental. Second, our specifications allow for the...

We develop a model to study the macroeconomic effects of public investment surges in low-income countries, making explicit: (i) the investment-growth linkages; (ii) public external and domestic debt accumulation; (iii) the fiscal policy reactions necessary to ensure debt-sustainability; and (iv)...

This paper assesses the macroeconomic implications of scaling up aid for Benin in line with the Gleneagles commitment to double aid to poor countries over the next three years to reach 85 per capita by 2010 and keep it at that level thereafter. The analysis suggests that the additional aid...

This paper uses a partial equilibrium framework to evaluate the relative efficiency, distributional and revenue implications of rice tariffs and targeted transfers in Madagascar, especially in the context of identifying their respective roles for poverty alleviation. Although there are likely to...

This paper explores the catalytic impact of IMF lending to Low-Income Countries on Official Development Assistance (ODA) during 1990-2019. It disentangles the effect on the amounts of ODA on countries’ participation in IMF programs (“extensive margin”) and the size of the IMF-supported...

Intro -- Contents -- I. INTRODUCTION -- II. RELATED LITERATURE -- III. THE MODEL -- IV. CROSS- COUNTRY INCOME DIFFERENCES -- V. POLICY EXPERIMENTS -- VI. THE AID COST OF REFORM -- VII. AID FAILURES -- VIII. CONCLUSION -- REFERENCES -- A. Optimal Fiscal Policy in a Closed Economy -- B. Optimal...

Intro -- Contents -- I. INTRODUCTION -- II. THE GLOBAL AND HISTORICAL CONTEXT -- III. Balance of Payments Impact -- IV. FISCAL IMPACT -- V. LOOKING FORWARD-POSSIBLE VULNERABILITIES -- VI. CONCLUSIONS AND IMPLICATIONS FOR DEMAND FOR IMF RESOURCES -- APPENDIX I-COMPARISON TO OIL SHOCKS OF THE...

This paper analyzes the monetary policy response to rising inflation in emerging and developing countries associated with the food and oil price shocks in 2007 and the first half of 2008. It reviews inflation developments in a sample of countries covering all regions and a broad range of...