Postconflict Monetary Reconstruction
During civil wars governments typically resort to inflation to raise revenue. A model of this phenomenon is presented, estimated, and applied to the choices and constraints faced during the postconflict period. The results show that far from there being a fiscal peace dividend, postconflict governme...
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| Format: | Journal Article |
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World Bank
2012
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| Online Access: | http://hdl.handle.net/10986/4473 |
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okr-10986-44732021-04-23T14:02:18Z Postconflict Monetary Reconstruction Adam, Christopher Collier, Paul Davies, Victor A.B. asset substitution assets capital flight discount rate inflation monetary policy money demand rate of inflation seigniorage seigniorage revenue During civil wars governments typically resort to inflation to raise revenue. A model of this phenomenon is presented, estimated, and applied to the choices and constraints faced during the postconflict period. The results show that far from there being a fiscal peace dividend, postconflict governments tend to face even more pressing needs after than during war. As a result, in the absence of postconflict aid, inflation increases sharply, frustrating a more general monetary recovery. Aid decisively transforms the path of monetary variables in the postconflict period, enabling the economy to regain peacetime characteristics. Postconflict aid thus achieves a monetary "reconstruction" analogous to its more evident role in infrastructure. 2012-03-30T07:12:36Z 2012-03-30T07:12:36Z 2008-01-30 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/4473 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank World Bank Journal Article Ghana Bolivia Belize El Salvador |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| topic |
asset substitution assets capital flight discount rate inflation monetary policy money demand rate of inflation seigniorage seigniorage revenue |
| spellingShingle |
asset substitution assets capital flight discount rate inflation monetary policy money demand rate of inflation seigniorage seigniorage revenue Adam, Christopher Collier, Paul Davies, Victor A.B. Postconflict Monetary Reconstruction |
| geographic_facet |
Ghana Bolivia Belize El Salvador |
| description |
During civil wars governments typically resort to inflation to raise revenue. A model of this phenomenon is presented, estimated, and applied to the choices and constraints faced during the postconflict period. The results show that far from there being a fiscal peace dividend, postconflict governments tend to face even more pressing needs after than during war. As a result, in the absence of postconflict aid, inflation increases sharply, frustrating a more general monetary recovery. Aid decisively transforms the path of monetary variables in the postconflict period, enabling the economy to regain peacetime characteristics. Postconflict aid thus achieves a monetary "reconstruction" analogous to its more evident role in infrastructure. |
| format |
Journal Article |
| author |
Adam, Christopher Collier, Paul Davies, Victor A.B. |
| author_facet |
Adam, Christopher Collier, Paul Davies, Victor A.B. |
| author_sort |
Adam, Christopher |
| title |
Postconflict Monetary Reconstruction |
| title_short |
Postconflict Monetary Reconstruction |
| title_full |
Postconflict Monetary Reconstruction |
| title_fullStr |
Postconflict Monetary Reconstruction |
| title_full_unstemmed |
Postconflict Monetary Reconstruction |
| title_sort |
postconflict monetary reconstruction |
| publisher |
World Bank |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/4473 |
| _version_ |
1764391518508941312 |