Post-conflict monetary reconstruction
During civil war governments typically resort to inflation to raise revenue. In this paper we model and quantify this phenomenon and then apply it to the choices and constraints faced in the post-conflict period. We show that far from there being a fiscal peace dividend, post-conflict governments te...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Journal article |
| Language: | English |
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Oxford University Press
2008
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| _version_ | 1826300942674296832 |
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| author | Adam, C Collier, P Davies, V |
| author2 | World Bank |
| author_facet | World Bank Adam, C Collier, P Davies, V |
| author_sort | Adam, C |
| collection | OXFORD |
| description | During civil war governments typically resort to inflation to raise revenue. In this paper we model and quantify this phenomenon and then apply it to the choices and constraints faced in the post-conflict period. We show that far from there being a fiscal peace dividend, post-conflict governments tend to face even more pressing needs than during war. In consequence, in the absence of post-conflict aid, inflation sharply increases, frustrating a more general monetary recovery. Aid decisively transforms the path of monetary variables in the post-conflict period, enabling the economy to regain peacetime characteristics. Post-conflict aid thus accomplishes a monetary ‘reconstruction’ analogous to its more evident role in infrastructure. |
| first_indexed | 2024-03-07T05:24:50Z |
| format | Journal article |
| id | oxford-uuid:e032f256-01ae-4f52-b740-733567cd5197 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T05:24:50Z |
| publishDate | 2008 |
| publisher | Oxford University Press |
| record_format | dspace |
| spelling | oxford-uuid:e032f256-01ae-4f52-b740-733567cd51972022-03-27T09:45:11ZPost-conflict monetary reconstructionJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:e032f256-01ae-4f52-b740-733567cd5197ConflictDevelopment economicsEnglishOxford University Research Archive - ValetOxford University Press2008Adam, CCollier, PDavies, VWorld BankDuring civil war governments typically resort to inflation to raise revenue. In this paper we model and quantify this phenomenon and then apply it to the choices and constraints faced in the post-conflict period. We show that far from there being a fiscal peace dividend, post-conflict governments tend to face even more pressing needs than during war. In consequence, in the absence of post-conflict aid, inflation sharply increases, frustrating a more general monetary recovery. Aid decisively transforms the path of monetary variables in the post-conflict period, enabling the economy to regain peacetime characteristics. Post-conflict aid thus accomplishes a monetary ‘reconstruction’ analogous to its more evident role in infrastructure. |
| spellingShingle | Conflict Development economics Adam, C Collier, P Davies, V Post-conflict monetary reconstruction |
| title | Post-conflict monetary reconstruction |
| title_full | Post-conflict monetary reconstruction |
| title_fullStr | Post-conflict monetary reconstruction |
| title_full_unstemmed | Post-conflict monetary reconstruction |
| title_short | Post-conflict monetary reconstruction |
| title_sort | post conflict monetary reconstruction |
| topic | Conflict Development economics |
| work_keys_str_mv | AT adamc postconflictmonetaryreconstruction AT collierp postconflictmonetaryreconstruction AT daviesv postconflictmonetaryreconstruction |