04653oam 22010454 450 991078840170332120230828232647.01-4623-4375-91-4519-8935-01-283-51471-01-4527-0231-49786613827166(CKB)3360000000443644(EBL)3014502(SSID)ssj0000940039(PQKBManifestationID)11479992(PQKBTitleCode)TC0000940039(PQKBWorkID)10946630(PQKB)10352510(OCoLC)694141188(MiAaPQ)EBC3014502(IMF)WPIEE2006145(EXLCZ)99336000000044364420020129d2006 uf 0engur|n|---|||||txtccrAid Volatility and Dutch Disease : Is There a Role for Macroeconomic Policies? /Thierry Tressel, Alessandro PratiWashington, D.C. :International Monetary Fund,2006.1 online resource (65 p.)IMF Working Papers"June 2006."1-4518-6405-1 Includes bibliographical references (p. 59-63).""Contents""; ""I. INTRODUCTION""; ""II. THE MODEL""; ""III. PARTIAL AND GENERAL EQUILIBRIUM EFFECTS OF FOREIGN AID AND MACROECONOMIC POLICY""; ""IV. THE OPTIMAL TIMING OF AID AND MACROECONOMIC POLICY""; ""V. THE EFFECTIVENESS OF MACROECONOMIC POLICIES IN AID-RECEIVING COUNTRIES""; ""VI. CONCLUSIONS""; ""Appendix I. Solution Strategy""; ""Appendix II-a. Managed Float Regimes""; ""Appendix II-b. General Equilibrium Effect of Front-Loading Aid with LBD Externalities""; ""Appendix III. Pseudo First Stage of System GMM Panel Regressions""; ""REFERENCES""This paper studies how macroeconomic policies can help offset two unintended and undesirable features of foreign aid: its volatility and Dutch disease. We present evidence that aid volatility augments trade balance volatility and that foreign aid, with the important exception of years of adverse shocks, depresses exports. We also find that these effects can be mitigated through changes in net domestic assets of the central bank-a variable that reflects both monetary and fiscal policy. To characterize the optimal policy, we develop a general equilibrium model in which the capital account is closed and aid influences productivity growth through positive (public expenditure) and negative (Dutch disease) externalities. In this setting, macroeconomic policies permanently affect real variables and can improve welfare if donors do not distribute foreign aid optimally over time.IMF Working Papers; Working Paper ;No. 2006/145Economic assistanceEconometric modelsEconomic policyEconometric modelsBanks and BankingimfExports and ImportsimfForeign ExchangeimfEmpirical Studies of TradeimfTrade: GeneralimfForeign AidimfMonetary PolicyimfInternational economicsimfBankingimfCurrencyimfForeign exchangeimfTrade balanceimfExportsimfForeign aidimfInternational reservesimfReal exchange ratesimfBalance of tradeimfInternational reliefimfForeign exchange reservesimfUnited StatesimfEconomic assistanceEconometric models.Economic policyEconometric models.Banks and BankingExports and ImportsForeign ExchangeEmpirical Studies of TradeTrade: GeneralForeign AidMonetary PolicyInternational economicsBankingCurrencyForeign exchangeTrade balanceExportsForeign aidInternational reservesReal exchange ratesBalance of tradeInternational reliefForeign exchange reservesTressel Thierry1463685Prati Alessandro120813International Monetary Fund.Research Dept.DcWaIMFBOOK9910788401703321Aid Volatility and Dutch Disease3849988UNINA