The trade-off between income distribution and stabilization is one of the least understood in development economics. The paper reviews the recent literature on the effects of devaluation and monetary and fiscal policy. Devaluation is shown to have a significant impact on incomes through both its...

After many years of relatively slow growth, Tanzania's national accounts data report accelerated aggregate growth since around 2000. Our analysis shows that there has been somewhat slower growth in private consumption and in sectors such as agriculture in which most of the poor work and live....