recipient's level of income or quality of institutions and policies; we find that short-impact aid causes growth, on average … with stronger institutions or longer life expectancies (better health). We also find a significant negative relationship …

affecting UK labour market conditions. When the real exchange rate is undervalued, short-run unemployment falls as firms respond … to an improvement in domestic competitiveness by increasing their demand for labour. The unemployment response to the … reflects monetary policy considerations, our results imply that unemployment can be targeted by economic policy. Our results …