Showing 1 - 5 of 5
Persistent link: https://www.econbiz.de/10011342858
Persistent link: https://www.econbiz.de/10010389564
We develop a tractable open-economy new-Keynesian model with two sectors to analyze the short-term effects of aid-financed fiscal expansions. We distinguish between spending the aid, which is under the control of the fiscal authorities, and absorbing the aid-using the aid to finance a higher...
Persistent link: https://www.econbiz.de/10014402820
We develop a model to analyze the macroeconomic effects of a scaling-up of aid and assess the implications of different policy responses. The model features key structural characteristics of low-income countries, including varying degrees of public investment efficiency and a learning-by-doing...
Persistent link: https://www.econbiz.de/10014402924
We study the role of the exchange rate regime, reserve accumulation, and sterilization policies in the macroeconomics of aid surges. Absent sterilization, a peg allows for almost full aid absorption — an increase in the current account deficit net of aid—delivering the same effects as those...
Persistent link: https://www.econbiz.de/10014394328