Exchange Rate Reform and Structural Disturbances in a Dual Exchange Rate Economy [electronic resource]
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TextSeries: IMF Working Papers; Working Paper ; No. 88/99Publication details: Washington, D.C. : International Monetary Fund, 1988Description: 1 online resource (24 p.)ISBN: 1451948751 :ISSN: 1018-5941Subject(s): Dual Exchange Rate | Exchange Markets | Exchange Rate | Exchange Rates | Price Level | Dominican Republic | El Salvador | Jamaica | Sierra LeoneAdditional physical formats: Print Version:: Exchange Rate Reform and Structural Disturbances in a Dual Exchange Rate EconomyOnline resources: IMF e-Library | IMF Book Store Abstract: This paper analyzes the implications of devaluation and a variety of structural disturbances in a dual exchange rate economy. A key feature of the model developed is its explicit recognition of both private (fraudulent) and officially-sanctioned cross transactions between the two exchange markets. The principal lesson to be learned from the analysis is that popular notions as to the effects of devaluation or of other disturbances are to be viewed with considerable caution when the dual rate regime involves inter-market transactions.
This paper analyzes the implications of devaluation and a variety of structural disturbances in a dual exchange rate economy. A key feature of the model developed is its explicit recognition of both private (fraudulent) and officially-sanctioned cross transactions between the two exchange markets. The principal lesson to be learned from the analysis is that popular notions as to the effects of devaluation or of other disturbances are to be viewed with considerable caution when the dual rate regime involves inter-market transactions.
Description based on print version record.
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