International aid has an ambiguous effect on the macroeconomy of the recipient country. To the extent that aid raises consumer expenditure, there will be some real exchange rate appreciation and a shift of resources away from traded goods production and into non-traded goods production. However,...

The impact of aid inflows on relative prices and output is ambiguous. Aid inflows that increase domestic expenditure are likely to cause real exchange rate appreciation, ceteris paribus. However, if this expenditure raises the capital stock in the traded goods sector, then output in this sector...

Les 14 pays membres de la zone franc en Afrique de l'Ouest et en Afrique centrale constituent - avec plusieurs d?cennies d'avance sur l'Union mon?taire europ?enne - la plus importante union mon?taire de l'h?misph?re austral. Face ? la perspective de cr?ation, ? court terme, de nouvelles unions...

The 14-member Franc Zone in West and Central Africa represents the largest monetary union in the southern hemisphere, predating the European Monetary Union by decades. With monetary unions planned for other parts of Africa in the near future, Macroeconomic Policy in the Franc Zone focuses on...