Aid and exchange rates in sub-Saharan Africa: No more Dutch Disease?

Given the significant inflows of foreign aid to sub-Saharan Africa (SSA) the possibility of Dutch Disease has been a concern. Most macroeconomic models predict that aid inflows, especially if large and/or unanticipated (shocks), will lead to an appreciation of the real exchange rate and undermine the competitiveness of the economy. Oliver Morrissey suggests that for the majority of countries aid has no or a minimal effect on the real exchange rate.

Read the Study

Image courtesy of the interviewee


Report Infringement

Sign-up

Leave a Reply

Your email address will not be published. Required fields are marked *

×
Many colleges and universities have institutional memberships. If you are affiliated with a subscribing institution, please access Faculti through your on-campus or proxy IP address. Alternatively, as a Guest, you have insight(s) remaining for this month. Register for free and view more today.
Related Posts
error:

Add the Faculti Web App to your Mobile or Desktop homescreen

Install
×