"This handbook was prepared in the Policy Wing of the IMF's African Department as a practical guide for assessing the macroeconomic implications and challenges associated with a significant scaling up of aid to African countries. Its purpose is to provide a resource for policy makers, practicing economists in African countries, and staff of international financial institutions and donor agencies who participate in the preparation of medium-term strategies for individual African countries, including in the context of the Poverty Reduction Strategy Papers (PRSPs)"--P. ix.

Includes bibliographical references (p. 59-68).

The macroeconomic effects of scaling up aid -- Managing the real exchange rate -- Using monetary policy for sterilization and inflation management -- Mobilizing adequate domestic revenues -- Projecting the impact of increased aid on economic growth -- Meeting other fiscal challenges -- Strengthening governance -- Maintaining debt sustainability -- Summary: five primary guidelines -- Appendix 1. The relationship between aid flows and exchange rates in Sub-Saharan Africa -- Appendix 2. The macroeconomics of aid.

Also available on the World Wide Web.