Format:
1 Online-Ressource (circa 46 Seiten)
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ISBN:
9781498312110
Series Statement:
IMF working paper WP/19, 126
Content:
This paper assesses the optimal setting of fiscal spending and foreign exchange rate intervention policies in response to volatile foreign aid, in a small open economy model that incorporates typical features of low-income countries. Within a class of policy rules, it jointly considers the optimal aid spending and international reserve accumulation policies. The results show that it is optimal to adjust government spending gradually in response to unpredictable fluctuations in aid, while partially accumulating foreign exchange reserves to offset Dutch disease effects. Also, allocating relatively more of the government spending to productive public investment, and less to government consumption, is welfare improving
Additional Edition:
Erscheint auch als Druck-Ausgabe Moldovan, Ioana Optimal Fiscal Spending and Reserve Accumulation Policies under Volatile Aid Washington, D.C. : International Monetary Fund, 2019 ISBN 9781498312110
Language:
English
Keywords:
Graue Literatur
DOI:
10.5089/9781498312110.001
URL:
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