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The Short-Run Macroeconomics of Aid Inflows: Understanding the Interaction of Fiscal and International Reserve Policy

Andrew Berg, Tokhir Mirzoev, Rafael Portillo, and Luis-Felipe Zanna

in Monetary Policy in Sub-Saharan Africa

Published in print:
2018
Published Online:
April 2018
ISBN:
9780198785811
eISBN:
9780191827624
Item type:
chapter
Publisher:
Oxford University Press
DOI:
10.1093/oso/9780198785811.003.0012
Subject:
Economics and Finance, Macro- and Monetary Economics, Behavioural Economics

The authors develop a tractable two-sector New Keynesian model to analyse the short-term effects of aid-financed fiscal expansions. The analysis distinguishes between spending the aid (increasing ... More


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