Do the black market and the official exchange rates converge in the long run?
β Scribed by Mohsen Bahmani-Oskooee; Altin Tanku
- Publisher
- Springer US
- Year
- 2006
- Tongue
- English
- Weight
- 711 KB
- Volume
- 30
- Category
- Article
- ISSN
- 1055-0925
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π SIMILAR VOLUMES
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
## ABSTRACT We examine consistency properties of the exchange rate expectation formation process of shortβrun and longβrun forecasts in the dollar/euro and yen/dollar market. Applying nonlinear consistency restrictions we show that in a simple expectation formation structure shortβrun forecasts are