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The prospect of scaled-up aid presents low-income countries with opportunities for achieving the Millennium Development Goals (MDGs). Managing these aid flows however, poses significant challenges for macro-economic management. These challenges arise from the potential impact of higher external inflows on competitiveness, inflation, and debt sustainability, and the complications posed by aid volatility and uncertainty for longer-term fiscal planning.
At this ODI and IMF event, the fiscal, monetary, and exchange rate policy challenges of managing aid, including issues of competitiveness, inflation, government spending, and debt sustainability, and the complications posed by aid volatility were discussed.
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Speakers: Sanjeev Gupta, Senior Advisor, Fiscal Affairs Department, IMF Patricia Alonso-Gamo, Assistant Director, Policy Development and Review Department, IMF Discussants: Mick Foster, Director, Mick Foster Economics Ltd. Max Lawson, Senior Policy Advisor, Oxfam GB Chair:
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