Download or read book Black Market Exchange Rates and Monetary Equilibrium written by Ian H. Giddy and published by . This book was released on 1980 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Inflation and the Black Market Exchange Rate in a Repressed Market written by Ms.Valerie Cerra and published by International Monetary Fund. This book was released on 2016-08-19 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a stylized general equilibrium model of the Venezuelan economy. The model explains how the recent sharp fall in oil revenue combines with foreign exchange rationing to produce a steep rise in inflation. Counterintuitively, a devaluation of the official exchange rate could temporarily reduce inflation. The model also explains how the hyper-depreciation of the black market exchange rate reflects prices in the most distorted goods markets.

Download or read book Recognizing Reality Unification of Official and Parallel Market Exchange Rates written by Mr.Simon T Gray and published by International Monetary Fund. This book was released on 2021-02-05 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: Some central banks have maintained overvalued official exchange rates, while unable to ensure that supply of foreign exchange meets legitimate demand for current account transactions at that price. A parallel exchange rate market develops, in such circumstances; and when the spread between the official and parallel rates is both substantial and sustained, price levels in the economy typically reflect the parallel market exchange rate. “Recognizing reality” by allowing economic agents to use a market clearing rate benefits economic activity without necessarily leading to more inflation. But a unified, market-clearing exchange rate will not stabilize without a supportive fiscal and monetary context. A number of country case studies are included; my thanks to Jie Ren for pulling together all the data for the country case studies, and the production of the charts.

Download or read book Black Market and Official Exchange Rates written by Guglielmo Maria Caporale and published by . This book was released on 2006 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents further empirical evidence on the relationship between black market and official exchange rates in six emerging economies (Iran, India, Indonesia, Korea, Pakistan, and Thailand). First, it applies both time series techniques and heterogeneous panel methods to test for the existence of a long-run relationship between these two types of exchange rates. Second, it tests formally the validity of the proportionality restriction implying a constant black-market premium. Third, it also analyses the short-run dynamic responses of both markets to shocks. Finally, it tries to shed some light on the determinants of the market premium. Evidence of slow reversion to the long-run equilibrium is found. Further, it appears that capital controls and expected currency devaluation are the two main factors affecting the size of the premium and determining the breakdown in the proportionality relationship.

Download or read book Monetary Aspects of the Black market Exchange Rate Determination written by Mario I. Bléjer and published by . This book was released on 1977 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Black Markets for Foreign Exchange Real Exchange Rates and Inflation written by Brian Pinto and published by World Bank Publications. This book was released on 1988 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inflation could rise permanently and substantially as a result of unifying official and black market exchange rates, even if real government spending remains constant.

Download or read book Parallel Exchange Rates in Developing Countries written by Miguel A. Kiguel and published by Springer. This book was released on 2016-07-27 with total page 411 pages. Available in PDF, EPUB and Kindle. Book excerpt: '...the most definitive study of the subject, assembling an all-star cast to address the many outstanding questions and succeeding beyond expectations in combining elegant theory and state of the art econometrics to reach very sensible policy conclusions.' - Mohsin S. Khan, Deputy Director, Research Department, International Monetary Fund ' This book fills an important vacuum in the literature of the economic consequences of parallel markets and should prove of great value to students of economic development and to policy-makers in developing countries as they struggle to reform their exchange rate and trade incentive systems. Here they will find all that they need to know.' - Vittorio Corbo, Professor of Economics, Universidad Catolica de Chile 'A most comprehensive treatment of the relationships between parallel foreign exchange markets and macroeconomic policies, both across countries and over time. The book substantially enhances our understanding of how these systems work in practice and will be of great interest to policy-makers, researchers and graduate students of economic policy.' - Samuel M. Wangwe, Professor of Economics, University of Dar es Salaam and Executive Director, Economic and Social Research Foundation, Dar es Salaam, Tanzania This book examines extensive empirical evidence on the macroeconomic implications of parallel exchange rates in developing countries. Eight case-studies from Africa, Latin America, and Turkey provide detailed evidence on the emergence of parallel exchange rates, their impact on macroeconomic performance, and the criteria for successful exchange-rate unification. A chapter on European dual exchange rates summarizes the contrasting experience of industrial countries. An overview chapter lays out the analytical framework, assesses the evidence, and draws policy conclusions.

Download or read book The Black Market Exchange Rate Versus the Official Rate written by Mohsen Bahmani-Oskooee and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many less developed countries have currency controls, which can lead to black-market trade and cause distortions in the exchange market. We test the flexible-price monetary model for 25 less developed countries, using both official and black-market exchange rates. We find that the model is supported in the long run, particularly when black-market rates are used. Measuring the speed of convergence to equilibrium, we find that it is often higher in the black-market specification, implying greater efficiency. This could offer justification for exchange-rate unification, particularly in Latin America.

Download or read book Real Exchange Rate Behavior and Economic Growth written by Mr.Ghiath Shabsigh and published by International Monetary Fund. This book was released on 1999-03-01 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the effect of the real exchange rate misalignment (RERMIS) on the collective economic growth of Egypt, Jordan, Morocco, and Tunisia. The paper constructs three measures of exchange rate misalignment based on purchasing power parity; a black market exchange rate; and a structured model. The empirical investigation confirmed the adverse effect of RERMIS on growth, using all measures of RERMIS, as predicted by endogenous growth models. The results also highlighted the role of other factors; specifically, capital growth and population have the theoretical signs predicted by the Solow growth model and are statistically significant.

Download or read book Monetary Disequilibrium Black Market Exchange Rate and the Balance of Payments the Case of Iran written by Reza Kalantar and published by . This book was released on 1983 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Black markets for Currency Hoarding Activity and Policy Reform written by Linda S. Goldberg and published by . This book was released on 1992 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Exchange Rate Misalignment in Developing Countries written by Sebastian Edwards and published by Johns Hopkins University Press. This book was released on 1988 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article analyzes the theory of equilibrium real exchange rates and defines misalignment as a deviation of the real exchange rate (RER) from its equilibrium level. The role of macroeconomic policies is then analyzed under three alternative nominal exchange rate regimes: predetermined nominal exchange rates; floating nominal rates; and dual or black market nominal exchange rates. This discussion points out how inconsistent macroeconomic policies often lead to real exchange rate misalignment. Corrective measures, including nominal devaluation and several alternative approaches, are then evaluated.

Download or read book Workers Remittances and the Equilibrium Real Exchange Rate written by Mr.Adolfo Barajas and published by International Monetary Fund. This book was released on 2010-12-01 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the impact of workers’ remittances on equilibrium real exchange rates (ERER) in recipient economies. Using a small open economy model, it shows that standard "Dutch Disease" results of appreciation are substantially weakened or even overturned depending on: degree of openness; factor mobility between domestic sectors; counter cyclicality of remittances; the share of consumption in tradables; and the sensitivity of a country’s risk premium to remittance flows. Panel cointegration techniques on a large set of countries provide support for these analytical results, and show that ERER appreciation in response to sustained remittance flows tends to be quantitatively small.

Download or read book Black Market Exchange Rate Unification of the Foreign Exchange Markets and Monetary Policy written by Nolvia Nery Saca and published by Peter Lang Gmbh, Internationaler Verlag Der Wissenschaften. This book was released on 1997 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines theoretically as well as empirically the behavior of a small open economy, first, under a dual official-black market exchange rate regime, and then, under the process of unification that has as its ultimate objective to absorb and legalize the black market for foreign exchange, eliminating the inefficiencies and market fragmentation associated with quasi-illegal activities. The study provides a modest insight into the difficulties of maintaining a system of dual exchange rates, on the one hand, and into the problems that a central bank may face in the conduct of monetary policy in the context of exchange rate and financial liberalization, on the other hand. It should also serve as a basis and motivation for continuing work on the design of the appropriate strategy of monetary policy for El Salvador. Additionally, it could serve as a guide for many developing countries which have a sizable black market and consider the unification of foreign exchange markets an important policy objective.

Download or read book Exchange Rate Unification with Black Market Leakages written by Linda S. Goldberg and published by International Monetary Fund. This book was released on 1993-02 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 1992 Russia unified the multiple exchange rates that had applied to international transactions. This paper describes the multiple exchange rate system that existed in Russia prior to mid-1992 and undertakes a theoretical exploration of the effects of the exchange rate unification that took place in July 1992. The model developed here allows for leakages between official and black markets and permits flexibility of the exchange rates in both official and parallel currency markets. Within this multiple exchange rate system with black market leakages, we trace the dynamic effects on official and parallel foreign exchange markets of changes in the types of policy instruments associated with Russia’s exchange rate regime reform. These instruments include adjustments of pegged interbank market exchange rates, rates of foreign exchange surrender taxation, and rates of taxation of capital account transactions.

Download or read book Parallel Currency Markets in Developing Countries written by Pierre-Richard Agénor and published by International Finance Section Department of Econ Ton Univers. This book was released on 1992 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Terms of Trade Commercial Policy and the Black Market for Foreign Exchange written by Ibrahim Elbadawi and published by . This book was released on 1989 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: