Stabilization Policies in Developing Countries with a Parallel Market for Foreign Exchange

Stabilization Policies in Developing Countries with a Parallel Market for Foreign Exchange
Author: Pierre-Richard Agénor
Publisher: International Monetary Fund
Total Pages: 44
Release: 1990-03-01
Genre: Business & Economics
ISBN: 1451923236


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The paper develops and tests a model of a developing economy that incorporates trade and capital restrictions, illegal transactions, a parallel foreign exchange market, currency substitution features, and forward-looking rational expectations. Temporary expansionary demand policies are associated with an increase in output and prices, a fall in the stock of net foreign assets, and a depreciation of the parallel exchange rate. The speed of adjustment is inversely related to the degree of rationing in the official foreign currency market. A once-for–all devaluation of the official exchange rate has no long-term effect on the premium.


Stabilization Policies in Developing Countries with a Parallel Market for Foreign Exchange
Language: en
Pages: 44
Authors: Pierre-Richard Agénor
Categories: Business & Economics
Type: BOOK - Published: 1990-03-01 - Publisher: International Monetary Fund

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The paper develops and tests a model of a developing economy that incorporates trade and capital restrictions, illegal transactions, a parallel foreign exchange
Stabilization Policies in Developing Countries with a Parallel Market for Foreign Exchange
Language: en
Pages: 44
Authors: Pierre-Richard Agenor
Categories:
Type: BOOK - Published: 2006 - Publisher:

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The paper develops and tests a model of a developing economy that incorporates trade and capital restrictions, illegal transactions, a parallel foreign exchange
Macroeconomic Models for Adjustment in Developing Countries
Language: en
Pages: 340
Authors: International Monetary Fund
Categories: Business & Economics
Type: BOOK - Published: 1991-06-15 - Publisher: International Monetary Fund

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This volume, edited by Mohsin S. Khan, Peter J. Montiel, and Nadeem U. Haque, examines recent IMF-developed empirical macroeconomic models dealing with adjustme
Real Exchange Rate Targeting in Developing Countries
Language: en
Pages: 24
Authors: Peter Montiel
Categories: Foreign exchange rates
Type: BOOK - Published: 1993 - Publisher:

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Approaches to Exchange Rate Policy
Language: en
Pages: 316
Authors: Mr.Richard C. Bart
Categories: Business & Economics
Type: BOOK - Published: 1994-06-01 - Publisher: International Monetary Fund

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External sector policies and exchange rate policy are central to a country's economic performance and to the IMF's surveillance functions. The papers in this bo