The choice of instruments for mitigating economic volatility is a serious consideration for policymakers and important … markets are more effective than conventional economic policies, such as fiscal interventions, in reducing economic volatility …

: its volatility and Dutch disease. We present evidence that aid volatility augments trade balance volatility and that …

the volatility of interest rates at which emerging economies borrow from international financial markets, and study the … statistical relationship of such regimes with episodes of sudden stops. Periods of high volatility tend to be persistent and are … documented in previous literature (Neumeyer and Perri, 2005) and that high-volatility regimes forecast sudden stops 6 and 12 …

The volatility of unanticipated output growth in income per capita is detrimental to long-run development, controlling …. This effect is significant and robust over a wide range of specifications. We unravel the effects of volatility by opening … dependence, physical and institutional barriers to trade and associated policy shocks increase volatility sharply and harm growth …

This paper reviews both the literature on aid volatility and also adds to that literature. In general, the focus of … this literature has been on the volatility of overall aid, while we focus more on the volatility of the individual aid … commitments and disbursements, particularly the latter. Key aid sectors in explaining total aid volatility relate to debt …