Stabilization Policies in Developing Countries with a Parallel Market for Foreign Exchange : A Formal Framework /

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-looking rational expectations. Temporary expansionary demand policies are associated wi...

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Bibliographic Details
Main Author: Agenor, Pierre-Richard
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1990.
Series:IMF Working Papers; Working Paper ; No. 1990/016
Online Access:Full text available on IMF