Is The Parallel Market Premium A Reliable Indicator Of Real Exchange Rate Misalignment In Developing Countries

Author : Mr.Peter Montiel
Publisher : International Monetary Fund
ISBN 13 : 1451960352
Total Pages : 26 pages
Book Rating : 4.58/5 ( download)

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Download or read book Is the Parallel Market Premium a Reliable Indicator of Real Exchange Rate Misalignment in Developing Countries written by Mr.Peter Montiel and published by International Monetary Fund. This book was released on 1993-08-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is often argued that the parallel market premium is a useful indicator of real exchange rate misalignment in developing countries. The empirical evidence does not, however, suggest the existence of a robust correlation between these two endogenous variables that is independent of the nature of economic shocks and various structural relationships in the economy. This paper presents an analytical investigation of the reliability of the parallel market premium as an indicator of real exchange rate misalignment in the context of a fully optimizing model of a developing country. The analysis suggests that one should exercise caution in drawing inferences about the sign and magnitude of real exchange rate misalignment from the parallel market premium.

Author : Peter J. Montiel
Publisher :
ISBN 13 :
Total Pages : 26 pages
Book Rating : 4.94/5 ( download)

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Download or read book Is the Parallel Market Premium a Reliable Indicator of Real Exchange Rate Misalignment in Developing Countries? written by Peter J. Montiel and published by . This book was released on 2006 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is often argued that the parallel market premium is a useful indicator of real exchange rate misalignment in developing countries. The empirical evidence does not, however, suggest the existence of a robust correlation between these two endogenous variables that is independent of the nature of economic shocks and various structural relationships in the economy. This paper presents an analytical investigation of the reliability of the parallel market premium as an indicator of real exchange rate misalignment in the context of a fully optimizing model of a developing country. The analysis suggests that one should exercise caution in drawing inferences about the sign and magnitude of real exchange rate misalignment from the parallel market premium.

Author : Fondo Monetario Internacional
Publisher :
ISBN 13 :
Total Pages : 18 pages
Book Rating : 4.05/5 ( download)

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Download or read book Is the parallel market premium a reliable indicator of real exchange rate misalignment in developing countries? written by Fondo Monetario Internacional and published by . This book was released on 1993 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Peter J... Montiel
Publisher :
ISBN 13 :
Total Pages : 18 pages
Book Rating : 4.19/5 ( download)

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Download or read book Is the parallel market premium a realiable indicator of real exchange rate misalignment in developing countries? written by Peter J... Montiel and published by . This book was released on 1993 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : International Monetary Fund
Publisher : International Monetary Fund
ISBN 13 : 1451943229
Total Pages : 52 pages
Book Rating : 4.21/5 ( download)

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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.

Author : Ibrahim A. Onour
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.24/5 ( download)

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Download or read book Parallel Market Premia and Misalignment of Official Exchange Rates written by Ibrahim A. Onour and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Due to restrictive foreign exchange policy and active parallel markets for foreign exchange in some developing countries, it is often believed that the real official exchange rate is undervalued (overvaluing the domestic currency). Since an overvalued domestic currency depress official current account below its equilibrium level, while an undervalued domestic currrency may be inflationary, it is important to be able to detect real official exchange rate misalignment as early as possible. This is difficult in economies where paparallel market for foreign currencies are well established and where it is therefore difficult to observe an underlying capital flows. We show that the direction of real official rate misalignment is identifiable without knowing the size of capital flow in the parallel market. We indicate that a change in the parallel market premium is an appropriate indicator of change in real official rate misalignment.

Author : Kidane Mengisteab
Publisher : Africa World Press
ISBN 13 : 9780865435599
Total Pages : 242 pages
Book Rating : 4.96/5 ( download)

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Download or read book Globalization and Autocentricity in Africa's Development in the 21st Century written by Kidane Mengisteab and published by Africa World Press. This book was released on 1996 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt: African economies are the most dependent and the most marginalised in the global system. Prevailing policies to integrate these economies more closely with the global economy are, in the view of many misplaced and this work presents a series of alternative strategies that will tap the energies of the African people to develop their own potential and reduce their dependence on World Bank/IMF-led approaches.

Author : International Monetary Fund. Research Dept.
Publisher : International Monetary Fund
ISBN 13 : 1451930887
Total Pages : 176 pages
Book Rating : 4.87/5 ( download)

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Download or read book IMF Staff papers written by International Monetary Fund. Research Dept. and published by International Monetary Fund. This book was released on 1994-01-01 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper presents a model of optimum currency areas using a general equilibrium approach with regionally differentiated goods. The choice of a currency union depends upon the size of the underlying disturbances, the correlation between these disturbances, the costs of transactions across currencies, factor mobility across regions, and the interrelationships between demand for different goods. It is found that, while a currency union can raise the welfare of the regions within the union, it unambiguously lowers welfare for those outside the union. [JEL F33, F36]

Author : Gabriel Di Bella
Publisher : International Monetary Fund
ISBN 13 :
Total Pages : 54 pages
Book Rating : 4.69/5 ( download)

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Download or read book Assessing Competitiveness and Real Exchange Rate Misalignment in Low-Income Countries written by Gabriel Di Bella and published by International Monetary Fund. This book was released on 2007-08 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Assessing a country's competitiveness routinely starts with an analysis of the real exchange rate. However, in low-income countries, empirical analysis of the real exchange rate is often subject to important limitations that seriously weaken the results. This paper summarizes the methodologies used to assess real exchange rate misalignments and discusses the range of obstacles common to low-income countries. Recognizing the importance of using a wide range of indicators for assessing competitiveness in low-income countries, the paper discusses alternative competitive measures and then proposes a template of indicators to allow for a systematic assessment of competitiveness in low-income countries. The template is then used to rank countries according to their competitiveness performance in 2006.

Author : International Monetary Fund
Publisher : International Monetary Fund
ISBN 13 : 9781557759801
Total Pages : 144 pages
Book Rating : 4.04/5 ( download)

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Download or read book Research Activities of the IMF, January 1991-December 1999 written by International Monetary Fund and published by International Monetary Fund. This book was released on 2000-01-01 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research activity in the IMF emphasizes the links between the organization's policy and operational concerns. The main objectives of research is IMF staff understanding of policy and operational issues relevant to the institution, and to improve the analytical quality of the work prepared for management and the Executive Board and the advice provided to member countries. The scope of research in the IMF is defined by the purposes and functions of the institution. In order to foster innovation and ensure quality control, the IMF makes much of its research available outside the institution and encourages staff to interact with academia and other research organizations through conferences, seminars, and occasional joint research projects. The visiting scholar’s program has also enhanced the quality of research done in the IMF. This program brings in leading members of the economics profession from around the world to assist in the preparation of papers for the Executive Board and to conduct research on IMF-related issues.