Stabilization Policies in Developing Countries with a Parallel Market for Foreign Exchange : A Formal Framework »
Journal Issue
Volume/Issue: 1990/16
Series: IMF Working Papers
Author(s): Pierre-Richard Agénor
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 March 1990
DOI: http://dx.doi.org/10.5089/9781451923230.001
ISBN: 9781451923230
Keywords: foreign exchange, exchange rate, inflation, foreign currency, parallel exchange rate
The paper develops and tests a model of a developing economy that incorporates trade and capital restrictions, illegal transactions, a parallel foreign exchange market, currency substitution features, and forward-l...