Aid Volatility and Macro Risks in Low-Income Countries

Eduardo Borenszteini ; Julia Cagéii ; Daniel Coheniii ; Cécile Valadier iInter-American Development BankiiPSE - Paris-Jourdan Sciences ÉconomiquesiiiCEPREMAP

Organisation for Economic Co-operation and Development

关键词: low income countries;    volatility;    IMF;    aid;   

DOI  :  https://doi.org/10.1787/227667286811

学科分类：社会科学、人文和艺术（综合）

来源: OECD iLibrary

【 摘 要 】

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).