Absorbing a windfall of foreign exchange: Dutch disease dymanics
The permanent income rule is seldom the optimal response to a windfall of foreign exchange, such as that from a resource discovery. Absorptive capacity constraints require domestic investment, and investment in structures requires non-traded inputs the supply of which is constrained by the initial c...
Main Authors: | , |
---|---|
Format: | Working paper |
Published: |
University of Oxford
2010
|