TY  - BOOK
AU  - Morales,R.Armando
TI  - Exchange Rate Uncertainty in Money-Based Stabilization Programs
T2  - IMF Working Papers; Working Paper
SN  - 1451841876 :
SN  - 1018-5941
PY  - 1998///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Exchange Rate
KW  - imf
KW  - Foreign Currency
KW  - Foreign Exchange
KW  - Inflation
KW  - Real Exchange Rate
KW  - Argentina
KW  - Dominican Republic
N2  - Complementing the explanation provided by Calvo and Vegh (1994) for money-based stabilization programs, exchange rate uncertainty introduced to a particular version of the portfolio approach with imperfect competition in the banking system leads to a bias toward appreciation that is directly related to the divergence of expectations and that dampens the interaction between portfolio movements and the real exchange rate. Based on Frankel-Froot, uncertainty exists when the fundamental equilibrium real exchange rate is temporarily unknown in a foreign exchange market with two types of agents: 'parity-guessers,' who expect a jump to a reference parity level, and 'money-followers,' who expect nominal depreciation equal to the monetary rule
UR  - http://elibrary.imf.org/view/IMF001/02198-9781451841879/02198-9781451841879/02198-9781451841879.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451841879
ER  -