Optimal Fiscal Spending and Reserve Accumulation Policies under Volatile Aid

Optimal Fiscal Spending and Reserve Accumulation Policies under Volatile Aid
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... READ MORE...

Publication date: June 2019
ISBN 9781498312110
$18.00

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