Year: 2008
Type: report
Abstract: The report argues that aid volatility is an important source of volatility for the poorest countries. Following a method already applied by the Agence Française de Développement, the report argues that loans to LICs should incorporate a floating grace period, which the country could draw upon when hit by a shock. The definition of a shock should include aid uncertainty, along with others such as commodity shocks and natural disasters. The idea is calibrated to a key IMF policy instrument towards Low-Income Countries, the Poverty-Reducing and Growth Facility (PRGF).
DOI: 10.1787/227667286811
Language: English
Subfield: Development
Field: Social Sciences
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W1518145221