The Transfer Problem Revisited : Have We Forgotten the Monetary Aspect ?

  • Selim Elekdag
  • Published 2002


This paper analyzes the famous “transfer problem” in a two country dynamic stochastic general equilibrium framework. Transfer effects include the impact of foreign aid, debt relief and huge current account reversals. More precisely, it considers the repercussions of transfers under fixed and floating exchange rate regimes. The adage that the nominal… (More)

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