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In this paper, we assess whether recent economic developments in Russia are symptomatic of Dutch Disease. We first provide a brief review of the literature on Dutch Disease and the natural resource curse. We then discuss the symptoms of Dutch Disease, which include (1) real exchange rate appreciation; (2) slower manufacturing growth; (3) faster service sector growth; and (4) higher overall wages. We test these predictions for Russia while carefully controlling for other factors that could have led to similar symptoms. We conclude that, while Russia has all of the symptoms, the diagnosis of Dutch Disease remains to be confirmed.

Foreign Exchange --- Macroeconomics --- Economic Theory --- Industries: Manufacturing --- Industries: Service --- Energy: Demand and Supply --- Prices --- Industry Studies: Manufacturing: General --- Industry Studies: Services: General --- Resource Booms --- Manufacturing industries --- Currency --- Foreign exchange --- Economic theory & philosophy --- Oil prices --- Manufacturing --- Real exchange rates --- Services sector --- Dutch disease --- Service industries --- Economic forecasting --- Russian Federation

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Existing empirical evidence indicates that remittances have a positive impact on a good number of development indicators of recipient countries. Yet when flows are too large relative to the size of the recipient economies, as those observed in a number of Latin American countries, they may also bring a number of undesired problems. Among those probably the most feared in this context is the Dutch Disease. This paper explores the empirical evidence regarding the impact of remittances on the real exchange rate. The findings suggest that remittances indeed appear to lead to a significant real exchange rate appreciation. The paper also explores policy options that may somewhat offset the observed effect.

Capital Inflow --- Consumption --- Currencies and Exchange Rates --- Debt Markets --- Demand --- Domestic Economy --- Dutch Disease --- Economic Stabilization --- Economic Theory and Research --- Economies --- Economy --- Emerging Markets --- External Financing --- Finance and Financial Sector Development --- Growth Rates --- International Markets --- Loss of Competitiveness --- Macroeconomic Management --- Macroeconomic Stability --- Macroeconomics and Economic Growth --- Natural Resources --- Open Economy --- Private Sector Development --- Real Exchange Rate --- Real Exchange Rate Appreciation --- Remittance --- Remittances --- Risk --- Welfare

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Post-conflict countries receive substantial aid flows after the start of peace. While post-conflict countries' capacity to absorb aid (that is, the quality of their policies and institutions) is built up only gradually after the onset of peace, the evidence suggests that aid tends to peak immediately after peace is attained and decline thereafter. Aid composition broadly reflects post-conflict priorities, with large parts of aid financing social expenditure and infrastructure investment. Aid has significant short-term effects on the real exchange rate (RER), as inferred from the behavior of RER in the world. While moderate RER overvaluation is observed in post-conflicts, it cannot be traced down to the aid flows. The empirical evidence on world growth reveals new findings about the pattern of catch-up growth during post-conflicts and the role of key growth determinants on post-conflict growth. Aid is an important determinant of growth, both generally and more strongly during post-conflict periods. Because RER misalignment reduces growth, RER overvaluation during post-conflicts reduces catch-up growth. Aid and RER overvaluation combined also lower growth. But the negative growth effect of RER overvaluation declines with financial development.

Absorptive Capacities --- Assets --- Conflict and Development --- Currencies and Exchange Rates --- Current Account --- Debt Markets --- Depreciation --- Development Economics and Aid Effectiveness --- Domestic-Currency --- Dutch Disease --- Economic Conditions and Volatility --- Economic Growth --- Economic Theory and Research --- Economies --- Economy --- Emerging Markets --- Equilibrium --- Equilibrium Level --- Export Diversification --- Export Growth --- Finance and Financial Sector Development --- Macroeconomic Management --- Macroeconomics and Economic Growth --- Misalignment --- Overvaluation --- Post Conflict Reconstruction --- Poverty Reduction --- Private Sector Development --- Pro-Poor Growth --- Real Exchange Rate --- Real Exchange Rate Appreciation --- Real Exchange Rate Overvaluation --- Relative Price --- Risks --- Social Conflict and Violence --- Social Development