Foreign aid and real exchange rate adjustments in a financially constrained dependent economy / prepared by Valerie Cerra, Serpel Tekin, and Stephen J. Turnovsky.

A dynamic dependent-economy model is developed to investigate the role of the real exchange rate in determining the effects of foreign aid. If capital is perfectly mobile between sectors, untied aid has no long-run impact on the real exchange rate. A decline in the traded sector occurs because aid,...

Full description

Bibliographic Details

Online Access:	Full Text (via ProQuest)
Main Authors:	Cerra, Valerie (Author), Tekin, Serpil (Author), Turnovsky, Stephen J. (Author)
Corporate Author:	IMF Institute
Format:	eBook
Language:	English
Published:	Washington, D.C. : International Monetary Fund, ©2008. ©2008.
Series:	IMF working paper ; WP/08/204.
Subjects:	Economic assistance > Econometric models. Foreign exchange rates > Econometric models. Structural adjustment (Economic policy) > Econometric models.