Multiple Exchange Rates, Fiscal Deficits and Inflation Dynamics:

The paper explores the inflationary implications of exchange rate regime reforms in a small open economy model combining the public finance view of inflation with multiple exchange markets. To account for the experience of many developing countries, the analysis focuses on transitions to multiple of...

Full description

Saved in:
Bibliographic Details
Main Author: Bodart, Vincent (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C International Monetary Fund 1996
Series:IMF Working Papers Working Paper No. 96/56
Online Access:UBW01
UEI01
LCO01
SBR01
UER01
SBG01
UBG01
FAN01
UBT01
FKE01
UBY01
UBA01
FLA01
UBM01
UPA01
UBR01
FHA01
FNU01
BSB01
TUM01
Volltext
Summary:The paper explores the inflationary implications of exchange rate regime reforms in a small open economy model combining the public finance view of inflation with multiple exchange markets. To account for the experience of many developing countries, the analysis focuses on transitions to multiple official exchange markets. In those countries, multiple exchange rates were often announced as temporary. The paper shows that the dynamic response of inflation to the reform markedly differ whether the announcement is credible or not. The paper also compares the response of inflation under a fixed crawl of nominal official rates and under the presence of policy rules aimed at reducing the spread between the official and parallel exchange rates
Physical Description:1 Online-Ressource (40 p)
ISBN:145196837X
9781451968378

There is no print copy available.

Interlibrary loan Place Request Caution: Not in THWS collection! Get full text