The paper examines the effects of aid and its volatility on consumption, investment, and the structure of production in the context of an intertemporal two-sector general equilibrium model. A permanent flow of aid finances mainly consumption, a result consistent with the historical failure of...

This paper models alternative policy responses to various sorts of disturbances-or "shocks"-to the steady-state path of a developing economy. Its objective is to arrive at some generalizations about appropriate credit and exchange rate policies. (One result, for example, focuses on the folly of...

Exchange-rate strategies may be used to pursue the most varied objectives as instruments of development policy or of structural adjustment. The following article will examine the advantages and disadvantages of a number of exchange-rate policy options

The paper examines the effects of aid and its volatility on consumption, investment, and the structure of production in the context of an intertemporal two-sector general equilibrium model. A permanent flow of aid finances mainly consumption, a result consistent with the historical failure of...

Relatively slow progress toward meeting the Millennium Development Goals (MDGs) by their 2015 target date has added urgency to the challenge of reducing global poverty. The authors of this new book--who include scholars from the IMF, World Bank, Oxford University, and the Center for Global...