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• W2956005561 abstract "We study the role of the exchange rate regime, reserve accumulation, and sterilization policies in the macroeconomics of aid surges. Absent sterilization, a peg allows for almost full aid absorption — an increase in the current account deficit net of aid—delivering the same effects as those of a flexible regime but with a necessary increase in inflation. Regardless of the regime, policies that limit absorption—and result in large accumulation of reserves—are welfare reducing: they help reduce the real appreciation (and inflation under the peg), but at the expense of reducing private consumption and investment, and therefore medium-term growth." @default.
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• W2956005561 date "2014-01-01" @default.
• W2956005561 modified "2023-09-23" @default.
• W2956005561 title "Policy Responses to Aid Surges in Countries with Limited International Capital Mobility: The Role of the Exchange Rate Regime" @default.
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• W2956005561 doi "https://doi.org/10.5089/9781484397008.001" @default.
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