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Endogenous changes in the exchange rate regime: A bureaucratic incentive model

✍ Scribed by Iljoong Kim; Inbae Kim

Publisher
Springer US
Year
2005
Tongue
English
Weight
449 KB
Volume
125
Category
Article
ISSN
0048-5829

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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