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Do Exchange Rate Regimes Matter for Inflation and Exchange Rate Dynamics? The Case of Central America

โœ Scribed by CAPUTO G., RODRIGO; MAGENDZO, IGAL


Book ID
124085307
Publisher
Cambridge University Press
Year
2011
Tongue
English
Weight
541 KB
Volume
43
Category
Article
ISSN
0022-216X

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This paper examines the relationship between the black market premium and the rate of inflation under a dual exchange rate regime consisting of an official market and a black market. By explicitly specifying the implicit export tax associated with the government budget constraint in a dynamic optimi