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 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 Parallel Currency Markets in Developing Countries written by International Monetary Fund and published by International Monetary Fund. This book was released on 1990-12-01 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper reviews recent theoretical and empirical developments in the analysis of informal currency markets in developing countries. The basic characteristics of these markets are highlighted, and alternative analytical models to explain them are discussed. The implications for exchange rate policy —including imposition of foreign exchange restrictions, devaluation, and unification of exchange markets— in countries with a sizable parallel market are also examined.
Download or read book Exchange Rate Unification with Black Market Leakages written by Ms.Linda S. Goldberg and published by International Monetary Fund. This book was released on 1993-02-01 with total page 44 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 The Use of the Parallel Market Rate as a Guide to Setting the Official Exchange Rate written by Nita Ghei and published by . This book was released on 1996 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Anticipated Exchange Rate Reforms written by Pierre-Richard Agénor and published by International Monetary Fund. This book was released on 1992-05 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Exchange rate reforms in developing countries have often aimed at floating the exchange rate in an attempt to unify the official and parallel markets for foreign exchange. This paper examines the anticipatory dynamics associated with such reforms. The analysis shows that if the future unified exchange rate is more depreciated than the prevailing official rate, a pre - announced reform will lead to a depreciation of the parallel rate upon announcement and, during the transition period, a rising premium, an increase in the rate of reserve losses, and possibly to an output contraction and an appreciation of the real exchange rate.
Download or read book Recent Developments in Financial Management and Economics written by Derbali, Abdelkader Mohamed Sghaier and published by IGI Global. This book was released on 2024-03-18 with total page 458 pages. Available in PDF, EPUB and Kindle. Book excerpt: The field of Financial Management & Economics (FME) is constantly adapting to the changing economic landscape, observing the ongoing developments in the global business environment. These shifting dynamics have introduced a variety of influences, both fleeting and enduring, that deeply affect the decision-making foundations within the business arena. Researchers are tasked with shedding light on the bigger picture, capturing the essence of both subtle and significant shifts. As they confront unprecedented challenges, the imperative to document and comprehend these transformations resonates more urgently than ever before. Recent Developments in Financial Management and Economics is a work that beckons academics, researchers, and industry professionals to engage in the exploration of these changes. This book has a singular objective: to provide professionals, academics, and researchers with new theoretical frameworks and the latest empirical research findings. The book focuses on trust as a key driver, influencing different levels of Financial Management & Economics. It explores trust across the global economy and individual interactions in networked settings, offering guidance for navigating the complexities of today's interconnected financial and economic systems.
Download or read book Evolution and Performance of Exchange Rate Regimes written by Mr.Kenneth Rogoff and published by International Monetary Fund. This book was released on 2003-12-01 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using recent advances in the classification of exchange rate regimes, this paper finds no support for the popular bipolar view that countries will tend over time to move to the polar extremes of free float or rigid peg. Rather, intermediate regimes have shown remarkable durability. The analysis suggests that as economies mature, the value of exchange rate flexibility rises. For countries at a relatively early stage of financial development and integration, fixed or relatively rigid regimes appear to offer some anti-inflation credibility gain without compromising growth objectives. As countries develop economically and institutionally, there appear to be considerable benefits to more flexible regimes. For developed countries that are not in a currency union, relatively flexible exchange rate regimes appear to offer higher growth without any cost in credibility.
Download or read book Bangladesh written by International Monetary Fund. Asia and Pacific Dept and published by International Monetary Fund. This book was released on 2023-12-14 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bangladesh: Selected Issues
Download or read book Distributional consequences of wheat policy in Sudan A simulation model analysis written by Dorosh, Paul A. and published by Intl Food Policy Res Inst. This book was released on 2021-12-15 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite reforms in early 2021, including a devaluation of the currency and a liberalization of imports, there remain significant distortions in Sudan’s wheat value chain, especially related to subsidized sales prices of flatbread. This flatbread subsidy, a key component of wheat policy, is not well-targeted. Calculations based on 2009 national household survey data and current 2021 prices and wheat supply show that urban poor households annually receive slightly less from this subsidy than urban non-poor households (18,900 and 20,800 SDG/capita). Rural poor households receive only 2,700 SDG/capita. This paper presents the results of several simulations of a partial equilibrium model of Sudan’s wheat economy that are designed to analyze the impacts of recent shocks and various policy options. Model simulations show that increased wheat imports, such as those financed by food aid, add to supplies for processing into wheat flour, flatbread, and other wheat products, resulting in lower prices for consumers and increased consumption, but also disincentives for production. A 300,000 ton increase in wheat imports, as occurred in early 2021, results in an 8 percent increase in wheat consumption and a 35 percent decline in the market price of non-flatbread wheat products. Production falls by 12 percent. Since flatbread prices are unchanged, wheat consumption of the urban poor, for whom flatbread is the major wheat product consumed, increases by only 4 percent. Raising flatbread prices by 30 percent to reduce the size of the fiscal subsidy reduces total consumption of flatbread by 17 percent and sharply reduces wheat consumption and real incomes of the urban poor. All households suffer a loss of 41 to 45 percent in the value of flatbread subsidies received. The urban poor experience the largest decline in total consumption of wheat (14 percent) and in total income (11 percent). (The average total income loss for all households is only 3 percent.) Reducing the flatbread subsidy without a compensating income transfer would significantly reduce the welfare of the urban poor and likely threaten political stability. Our results suggest that a combination of key wheat policies involving high levels of imports – including injection of food aid wheat into the economy in late 2020 – and subsidized flatbread will significantly benefit urban poor households. Nonetheless, the are important data gaps on several aspects of the wheat sector, including no recent nationally representative household expenditure survey data. In addition, greater transparency, including publication of quantities and prices of government purchases, sales of wheat and wheat flour, and quantities and prices of subsidized flatbread across the country has the potential to significantly increase the efficiency of the entire wheat sector. As shown in this paper, Sudan’s wheat policies in recent years, such as increased wheat imports, price subsidies in the wheat value chain, and low prices of flatbread, have in general favored consumers, to the detriment of producers. These interventions in the wheat value chain, especially those related to subsidies on flatbread, have especially large effects on the welfare of urban households, making these policies particularly politically sensitive. However, they have entailed high fiscal costs, threatening macro-economic stability and crowding out other possible investments to promote growth and poverty reduction. Careful policy analysis and ongoing monitoring of outcomes and new developments will be needed to help guide the important choices ahead.
Download or read book Exchange Rate Economics written by Ronald MacDonald and published by Routledge. This book was released on 2005 with total page 334 pages. Available in PDF, EPUB and Kindle. Book excerpt: ''In summary, the book is valuable as a textbook both at the advanced undergraduate level and at the graduate level. It is also very useful for the economist who wants to be brought up-to-date on theoretical and empirical research on exchange rate behaviour.'' ""Journal of International Economics""
Download or read book Libya written by International Monetary Fund. Middle East and Central Asia Dept. and published by International Monetary Fund. This book was released on 2023-06-08 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: Libya: Selected Issues
Download or read book Green Growth in South Asia written by World Bank and published by World Bank Publications. This book was released on 2023-10-03 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt: Notwithstanding global growth weakness and financial pressures, growth in South Asia is expected to remain robust, supported by slower fiscal consolidation than in other EMDEs, strong public investment, and a recovery as financial stress has subsided. Policy challenges include, in the short-term, preserving financial stability and restoring fiscal sustainability and, in the long-term, rekindling investment, and managing an energy transition. Currently, the energy intensity of South Asian economies is almost twice the global average—despite a decline over the past two decades that was almost entirely driven by firm-level, within-sector cuts in energy intensity. The potential benefit of regulatory policies, information interventions, and financial support to help accelerate the diffusion of these technologies, as well as the possibility that these could also lend broader support for countries' development objectives. The transition away from fossil fuels may have considerable labor market impacts. A wide range of policies, including better access to high-quality education, finance, and markets; improved labor mobility; and strengthened social safety nets, will be needed to facilitate the adjustment in labor markets while protecting vulnerable workers.
Download or read book Money and the Mechanism of Exchange written by William Stanley Jevons and published by New York : D. Appleton, c[1875]. This book was released on 1875 with total page 396 pages. Available in PDF, EPUB and Kindle. Book excerpt: Series title also at head of t.p.
Download or read book Market Volatility and Foreign Exchange Intervention in EMEs written by Banco de Pagos Internacionales (Basilea, Suiza). Departamento Monetario y Económico and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Monetary Geography of Africa written by Paul R. Masson and published by Rowman & Littlefield. This book was released on 2004-11-30 with total page 248 pages. Available in PDF, EPUB and Kindle. Book excerpt: Africa is working toward the goal of creating a common currency that would serve as a symbol of African unity. The advantages of a common currency include lower transaction costs, increased stability, and greater insulation of central banks from pressures to provide monetary financing. Disadvantages relate to asymmetries among countries, especially in their terms of trade and in the degree of fiscal discipline. More disciplined countries will not want to form a union with countries whose excessive spending puts upward pressure on the central bank's monetary expansion. In T he Monetary Geography of Africa, Paul Masson and Catherine Pattillo review the history of monetary arrangements on the continent and analyze the current situation and prospects for further integration. They apply lessons from both experience and theory that lead to a number of conclusions. To begin with, West Africa faces a major problem because Nigeria has both asymmetric terms of trade—it is a large oil exporter while its potential partners are oil importers—and most important, large fiscal imbalances. Secondly, a monetary union among all eastern or southern African countries seems infeasible at this stage, since a number of countries suffer from the effects of civil conflicts and drought and are far from achieving the macroeconomic stability of South Africa. Lastly, the plan by Kenya, Tanzania, and Uganda to create a common currency seems to be generally compatible with other initiatives that could contribute to greater regional solidarity. However, economic gains would likely favor Kenya, which, unlike the other two countries, has substantial exports to its neighbors, and this may constrain the political will needed to proceed. A more promising strategy for monetary integration would be to build on existing monetary unions—the CFA franc zone in western and central Africa and the Common Monetary Area in southern Africa. Masson and Pattillo argue that the goal of a creating a s
Download or read book Resetting the International Monetary Non System written by José Antonio Ocampo and published by Oxford University Press. This book was released on 2017 with total page 296 pages. Available in PDF, EPUB and Kindle. Book excerpt: Annotation Provides an analysis of the global monetary system and proposes a comprehensive yet evolutionary reform of the system aimed at creating better monetary cooperation for the twenty-first century.
