We examine the properties of alternative monetary policy rules in response to large aid surges in low-income countries … model, we show that simple monetary rules that stabilize the path of expected future seigniorage for a given aid flow have … fiscal responses to aid inflows, appear to be consistent with actual responses to recent aid surges in a range of post …

In previous papers we have argued that aid is likely to mitigate the negative effects of external shocks on economic … growth (i.e., aid is more effective in countries that are more vulnerable to external shocks). Recently an important debate … has emerged about the possible negative effects of aid volatility itself. However, the cushioning effect of aid may …

probability of obtaining funds; or, the better the applicant's governance, the greater are its gains. Moreover, the maximum aid a … competition for aid, and the outcome for the quality of governance. …

. Having discussed the nature and dynamics of the GAE, the paper turns to sketch a series of vectors (trade, aid and energy …

This paper investigates the macroeconomic challenges created by a surge in aid inflows. It develops an analytical … framework for examining possible policy responses to increased aid, in terms of absorption and spending of aid - where the … countries that recently experienced an aid surge (Ethiopia, Ghana, Tanzania, Mozambique and Uganda) shows no support for …

underlying aid. The first is when we have several principals with conflicting objectives. Any one principal cannot offer high … with ensuring aid effectiveness may concern both principal and agent; the optimal solution to which requires difficult to …

The current consensus objective of development aid in the international community is to reduce poverty in general and … growth as the principal means to this end. But the policy objective of aid can be defined in many ways, and has in fact … objective of development aid and explores the implications of doing so for aid programme priorities and the international aid …

make aid counterproductive, even harmful; and (ii) it is very difficult to manage effective development cooperation with … weak governments. Channelling aid through NGOs, or giving limited aid in the form of capacity-building is clearly not … sufficient to solve the problems fragile states face. In order to minimize distortions caused by aid, the literature advocates a …

should inform aid policy in heterogeneous countries with severe HIs. It shows how this would change aid allocation across … countries, leading to more aid to heterogeneous countries relative to homogeneous ones, the opposite of the existing bias in aid … distribution. It explores how adopting an HI approach would affect the use of particular aid instruments, arguing that different …