Postconflict Monetary Reconstruction

Posted: 16 Jun 2008

See all articles by Christopher Scott Adam

Christopher Scott Adam

University of Oxford

Paul Collier

University of Oxford - Blavatnik School of Government

Victor A. B. Davies

African Development Bank

Date Written: 2008

Abstract

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.

Keywords: H56, F35, O10

Suggested Citation

Adam, Christopher Scott and Collier, Paul and Davies, Victor A. B., Postconflict Monetary Reconstruction (2008). The World Bank Economic Review, Vol. 22, Issue 1, pp. 87-112, 2008, Available at SSRN: https://ssrn.com/abstract=1146054 or http://dx.doi.org/lhm020

Christopher Scott Adam (Contact Author)

University of Oxford ( email )

Oxford
United Kingdom

Paul Collier

University of Oxford - Blavatnik School of Government ( email )

10 Merton St
Oxford, Oxfordshire OX1 4JJ
United Kingdom

Victor A. B. Davies

African Development Bank ( email )

Rue Joseph Anoma
Abidjan, Ivory Coast 01 BP 1387
Ivory Coast (Cote D'ivoire)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
328
PlumX Metrics