Download or read book The Black Market for Foreign Exchange and the Domestic Demand for Money written by Mario I. Bléjer and published by . This book was released on 1977 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Foreign Exchange Queues Informal Traders and a Zero Premium in the Black Market written by Mr.Jan-Peter Olters and published by International Monetary Fund. This book was released on 1999-08-01 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: During 1996–98, several indicators hinted at the apparent unsustainability of Cape Verde’s exchange rate peg. The country, faced with a considerable backlog of approved but unmet applications for foreign currencies, tolerated a parallel market. Street traders, however, demanded only negligible premiums (if any at all) for foreign exchange. By integrating the emigrants’ transfer decisions into a basic Mundell-Fleming-type model, the author conjectures that this puzzle can be explained with the increasing use of transfer channels outside the banking system, leading to unrecorded inflows of foreign exchange. Analysis of the relevant balance of payments data appears to support this result.
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 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:
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 Inconvertibility and the Unofficial Or Parallel Market for Foreign Currency written by Elcyon Caiado Rocha Lima and published by . This book was released on 1986 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper describes a model of the determination of the official and unofficial (parallel) exchange rates for a situation in which there is (potentially) a demand to hold foreign currency and in which holdings of the foreign currency cannot be freely altered by trade at the offical exchange rate (with the central bank). Instead, the existing stock of foreign currency is traded at the unoffical exchange rate and alterations in the existing stock come about only through a costly smuggling activity. The model is nonstochastic. It is a model of a small country- in the sense that foreign prices and interest rates are taken as given- that is inhabited by overlapping generations. No restrictions are imposed on international trade in goods and a special form of exchange rate flexibility is assumed. The model is particularly helpful in isolating different sources for the existence of black markets for foreign currences. It does shed some light on the welfare implications of domestic currency convertibility (when trade restrictions are not significant).
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 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 Basics of Foreign Exchange Markets written by William D. Gerdes and published by Business Expert Press. This book was released on 2018-03-19 with total page 111 pages. Available in PDF, EPUB and Kindle. Book excerpt: In an increasingly interdependent global economy, an understanding of foreign exchange markets is more critical than ever. These markets are inextricably entwined with underlying monetary standards and consequently they are treated conjointly in this book. Four different foreign exchange rate regimes are analyzed including exchange rates under commodity money, fiduciary money, fiat money (with fixed exchange rates), and fiat money (with flexible exchange rates). For more than eight decades, most countries have operated with fiat money. Proponents maintain that fiat money provides individual countries with much greater monetary autonomy. Yet both analytics and experience indicate that this is not always the case. Whether a country has more monetary autonomy depends on whether fiat money is paired with fixed or flexible exchange rates. Although flexible exchange rate regimes are not without their critics, it has become increasingly apparent that fiat money with flexible rates provides individual countries much greater monetary autonomy. This arrangement allows participants in foreign exchange markets greater latitude for adjusting to the wide variations in national monetary policies that are prevalent with fiat money. Several audiences may find this book beneficial: undergraduate students in economics and finance, students of international business, graduate students, students in executive programs who need to expand their knowledge of international finance, and practicing executives and managers—especially those who are employed by companies operating globally.
Download or read book Foreign Currency Deposits and the Demand for Money in Developing Countries written by Mr.Mohsin S. Khan and published by International Monetary Fund. This book was released on 1992-01-01 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the relative demands for domestic and foreign currency deposits by residents of developing countries. A dynamic currency substitution model that incorporates forward-looking rational expectations is formulated and then estimated for a group of ten developing countries. The results indicate that the foreign rate of interest and the expected rate of depreciation of the parallel market exchange rate are important factors in the choice between holding domestic money or switching to foreign currency deposits held abroad. From an empirical standpoint, the forward-looking framework adopted here also turns out to be superior to the conventional currency-substitution model.
Download or read book Foreign Exchange Queues Informal Traders and a Zero Premium in the Black Market written by Jan-Peter Olters and published by . This book was released on 1999 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Black Foreign Exchange Markets written by Hendrik Van den Berg and published by . This book was released on 1989 with total page 556 pages. Available in PDF, EPUB and Kindle. Book excerpt:
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 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 Controls and Parallel Market Economies in Sub Saharan Africa written by Ernesto May and published by . This book was released on 1985 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides a theoretical framework to understand the way in which exchange controls modify the behavior of the different agents in the economy, leading to the creation of a parallel market economy. It gives the necessary theoretical elements to analyze this parallel market economy and provides a simple methodology to obtain relevant quantitative information about it. Finally, the paper elaborates on some of the policy implications of the existence of a parallel market economy. The model developed shows that the parallel market activities can be explained through the optimizing behavior of exporters and importers, which determines the amount of import and export smuggling, the level of the rent-seeking activity, and the black market exchange rate that is consistent with an equilibrium position where no one has any more incentives to move from their attained position. A method to detect the presence, and assess the magnitude of the parallel market economy, as well as to explain its behavior quantitatively, is then developed and applied to the case of Ghana.
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 Household Demand for Money in Poland written by Mr.Timothy D. Lane and published by INTERNATIONAL MONETARY FUND. This book was released on 1992-01-01 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the household demand for narrow money in Poland during the 1980s. At that time, there were shortages, but informal trade in both goods and foreign exchange was common, and holdings of foreign currency were substantial. Household money demand in this environment is first examined at the theoretical level: a representative household’s holding of domestic and foreign money is analyzed in a cash-in-advance model in which domestic currency is needed to purchase goods in the official shops while either domestic or foreign currency can be used in the black market. This model gives rise to a formulation of money demand which is then estimated using household-level data from 1979 to 1988.
