Summary We analyze some potential adverse macroeconomic side-effects of aid transfers: Real appreciation of the recipient′s currency may impair the aggregate output via crowding-out productive export sectors, the so-called Dutch Disease. We use simplified balance sheets to elucidate the...

We analyze some potential adverse macroeconomic side-effects of aid transfers: Real appreciation of the recipient’s currency may impair the aggregate output via crowding-out productive export sectors, the so-called Dutch Disease. We use simplified balance sheets to elucidate the effects of...

If the governments of the industrialized countries keep their promise, official development assistance (ODA) will rise sharply in the next few years. The main beneficiaries will be the least developed countries of sub-Saharan Africa. The additional financial transfers will increase developing...

Wenn die Regierungen der Industrieländer ihre Versprechen einhalten, werden die staatlichen Entwicklungsleistungen (ODA) in den nächsten Jahren erheblich ansteigen. Hiervon sollen vor allem die am wenigsten entwickelten Länder Sub-Sahara Afrikas profitieren. Die zusätzlichen Finanztransfers...

Summary I present an integral approach for the analysis of supply shocks, financial transfers and combinations thereof in a model of monopolistic competition. Introducing an informal sector reveals an asymmetry between „spending“ the value of the transfer by the recipient government and...