The Macroeconomics of Scaling Up Aid : Lessons from Recent Experience / Andrew Berg, Mumtaz Hussain, Shaun Roache, Amber Mahone, Tokhir Mirzoev, Shekhar Aiyar.

Format:

Book

Government document

Author/Creator:

Berg, Andrew.

Contributor:

Aiyar, Shekhar.

Hussain, Mumtaz.

Mahone, Amber.

Mirzoev, Tokhir.

Roache, Shaun.

International Monetary Fund.

Series:

Occasional Papers; Occasional Paper ; No. 2007/002

Occasional Papers

Language:

English

Subjects (All):

Absorptive capacity (Economics)--Africa--Case studies.

Absorptive capacity (Economics).

Economic assistance--Africa--Case studies.

Economic assistance.

Government spending policy--Africa--Case studies.

Government spending policy.

Physical Description:

1 online resource (114 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2007.

Summary:

This study analyzes key issues associated with large increases in aid, including absorptive capacity, Dutch disease, and inflation. The authors develop a framework that emphasizes the different roles of monetary and fiscal policy and apply it to the recent experience of five countries: Ethiopia, Ghana, Mozambique, Tanzania, and Uganda. These countries have often found it difficult to coordinate monetary and fiscal policy in the face of conflicting objectives, notably to spend the aid money on domestic goods and to avoid excessive exchange rate appreciation.

Contents:

Cover; Contents; Preface; Executive Summary; I: Introduction; Surprising Results; Work Program; II: Conceptual Framework and Its Application to Five Countries; Macroeconomic Framework for Analysis of Increases in Aid Inflows; Boxes; 2.1. Absorption, Spending, and Central Bank and Fiscal Accounting; Findings from Country Studies; Tables; 2.1. Patterns of Aid Inflows; Figures; 2.1. Total Net Budget Aid; 2.2. Changes in Composition of Budgetary Aid; 2.2. GDP Growth, Inflation, and Private Investment; 2.3. Real Effective Exchange Rate; 2.3. Real Effective Exchange Rates and Aid Inflows

2.2. Terms-of-Trade Shocks and Aid Inflows2.4. Balance of Payments Identity; 2.3. Aid, Absorption, and Capital Flows; 2.5. Allocation of Incremental Net Budgetary Aid: Spent or Saved; 2.6. Domestic Debt and Debt Service Indicators; 2.4. Programmed vs. Actual Levels of Fiscal Deficit (Excluding Aid) and Net Budget Aid; 2.4. Aid Volatility and Programs Supported by the Poverty Reduction and Growth Facility; Conclusions and Policy Implications; 2.7. Policy Response to Aid Surge; 2.5. Ethiopia and Ghana: Limited Aid Impact; 2.6. Mozambique, Tanzania, and Uganda: Spending Exceeds Absorption

Appendix 2.1. Methodology for Sample SelectionAppendix 2.2. Dutch Disease: Theory and Evidence; 2.A1. Aid Flows: Changes and Levels; 2.A2. Net Official Development Assistance; III: Ethiopia; Pattern of Aid Inflows; Exchange Rate, Prices, and Terms of Trade; 3.1. Ethiopia: Aid and Other Inflows; 3.1. Ethiopia: Programmed vs. Actual Levels of Net Budget Aid; Spending Out of Aid; 3.2. Ethiopia: Exchange Rate and Price Developments; Monetary Policy Response; 3.2. Ethiopia: Trade Indicators; 3.3. Ethiopia: Terms-of-Trade Shocks and Aid Inflows; 3.4. Ethiopia: Was Aid Absorbed?; Conclusions

3.5. Ethiopia: Was Aid Spent?3.3. Ethiopia: Exchange Rate and Treasury Bill Rates; 3.4. Ethiopia: Gross Official Reserves; 3.6. Ethiopia: Year-on-Year Changes in Absorption and Spending of Aid Inflows; 3.7. Ethiopia: Selected Monetary Indicators; 3.8. Ethiopia: Domestic Debt and Debt Service Indicators; 3.9. Ethiopia: Investment and Interest Rates; 3.5. Ethiopia: Selected Program Targets and Outcomes; IV: Ghana; Pattern of Aid Inflows; Was Aid Absorbed?; Was Aid Spent?; 4.1. Ghana: Net Aid Inflows and Selected Economic Indicators; Monetary Policy Response; 4.2. Ghana: Aid Shocks

4.3. Ghana: Balance of Payments4.4. Ghana: Net Aid Flows and the Fiscal Response; 4.1. Ghana: Aid Flows and Public Expenditure Patterns; 4.1. Ghana: Program Adjustors for Aid Surprises; 4.2. Ghana: Performance Against Domestic Financing Targets; Conclusions; 4.2. Ghana: Terms-of-Trade Shocks and Aid Inflows; 4.3. Ghana: Exchange Rates, Inflation, and Aid Flows; 4.5. Ghana: Monetary Conditions; 4.4. Ghana: Real Treasury Bill Rates Using Annualized Quarterly Inflation; V: Mozambique; Pattern of Aid Inflows; Aid Absorption; Spending Out of Aid; Real Exchange Rate and Terms of Trade

5.1. Mozambique: Aid and Other Inflows

Notes:

Description based upon print version of record.

Includes bibliographical references (pages 101-103).

Description based on print version record.

ISBN:

9781462348169

1462348165

9781451992571

1451992572