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Working paper

Riding the wave: monetary responses to aid surges in low-income countries

Abstract:

We focus on the management of highly persistent shocks to aid flows, including HIPC or MDG-related increases in net flows, in the presence of currency substitution by the domestic private sector. Such shocks have beneficent long-run effects, but when currency substitution is high they can produce dramatic macroeconomic management problems in the sort run. What is the appropriate mix of money and exchange rate targeting in such cases, and the role of temporary sterilization? We analyze these a...

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Publication status:
Published
Peer review status:
Not peer reviewed

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Institution:
University of Indiana
Role:
Author
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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Sub department:
CSAE
Research group:
Development economics
Oxford college:
St Cross College
Role:
Author
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Institution:
"Swarthmore College, PA", "University of Oxford"
Department:
Social Sciences Division - Economics - Centre for the study of African Economies
Role:
Author
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Institution:
"International Monetary Fund", "University of Oxford"
Department:
Social Sciences Division - Economics - Centre for the study of African Economies
Role:
Author
Series:
CSAE working paper series
Place of publication:
http://www.csae.ox.ac.uk/workingpapers/main-wps.html
Publication date:
2006-01-01
Language:
English
Keywords:
Subjects:
UUID:
uuid:a48cff70-bc43-4cfe-854f-815f0d01448c
Local pid:
ora:2608
Deposit date:
2009-02-16

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