to volatile foreign aid, in a small open economy model that incorporates typical features of low-income countries. Within … a class of policy rules, it jointly considers the optimal aid spending and international reserve accumulation policies … aid, while partially accumulating foreign exchange reserves to offset Dutch disease effects. Also, allocating relatively …

We introduce a new suite of macroeconomic models that extend and complement the Debt, Investment, and Growth (DIG …'s properties by analyzing the growth, debt, and distributional consequences of big-push public investment programs with different …

context, maintaining or even raising the region's economic growth will require an offset by the private sector. The analysis … draws lessons from countries that have successfully transitioned from public investment to private investment-led growth … policies could help Benin achieving a smooth transition from public to private sector-led growth …

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 current account deficit-which is influenced by the central bank''s reserves …