Aid growth and real exchange rate dynamics is popular PDF and ePub book, written by Shantayanan Devarajan in 2008, it is a fantastic choice for those who relish reading online the Currencies and Exchange Rates genre. Let's immerse ourselves in this engaging Currencies and Exchange Rates book by exploring the summary and details provided below. Remember, Aid growth and real exchange rate dynamics can be Read Online from any device for your convenience.
Aid growth and real exchange rate dynamics Book PDF Summary
Abstract: Devarajan, Go, Page, Robinson, and Thierfelder argued that if aid is about the future and recipients are able to plan consumption and investment decisions optimally over time, then the potential problem of an aid-induced appreciation of the real exchange rate (Dutch disease) does not occur. In their paper, "Aid, Growth and Real Exchange Rate Dynamics," this key result is derived without requiring extreme assumptions or additional productivity story. The economic framework is a standard neoclassical growth model, based on the familiar Salter-Swan characterization of an open economy, with full dynamic savings and investment decisions. It does require that the model is fully dynamic in both savings and investment decisions. An important assumption is that aid should be predictable for intertemporal smoothing to take place. If aid volatility forces recipients to be constrained and myopic, Dutch disease problems become an issue.
Detail Book of Aid growth and real exchange rate dynamics PDF
- Author : Shantayanan Devarajan
- Release : 21 September 2024
- Publisher : World Bank Publications
- ISBN : 978186723xxxx
- Genre : Currencies and Exchange Rates
- Total Page : 44 pages
- Language : English
- PDF File Size : 19,9 Mb
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