Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund, issuing body.
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| ISBN: | 1455289752
9781455289752
1462323731
9781462323739
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| Notes: | Includes bibliographical references (pages 33-35).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
English.
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
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| Summary: | Annotation This paper develops a model of devaluation crises for an economy where foreign exchange restrictions lead to the emergence of a parallel market. the devaluation rule relates the size of the parity change to the spread between the official and parallel exchange rates. the mechanism that triggers the devaluation relates credit policy and the inflation tax. a credit expansion leads to an increase in the spread and possibly to a fall in inflation tax revenue, as agents switch away from domestic currency holdings. a devaluation reverses temporarily the process of erosion of the tax base if the associated fall in the premium raises the credibility of the new parity.
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| Other form: | Print version: Agenor, Pierre-Richard. Exchange restrictions and devaluation crises. [Washington, D.C.] : International Monetary Fund, Research Dept., [1990]
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