Alternative Dual Exchange Market Regimes: Some Steady State Comparisons

October 1, 1990

Preview Citation

Format: Chicago

José Saúl Lizondo. Alternative Dual Exchange Market Regimes: Some Steady State Comparisons, (USA: International Monetary Fund, 1990) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper compares two alternative dual exchange market regimes. In one of them, the official market clears through changes in international reserves, while in the other regime, the central bank implements a rationing scheme so as to keep international reserves constant. The paper discusses the effects on the rate of inflation, the balance of payments, the real exchange rate, and the spread between the free and the official exchange rate, of various economic policies, including exchange rate policy, fiscal policy, and unification of the exchange markets. It concludes that the steady state effects for most of these policies are qualitatively the same under both regimes.

Subject: Currency markets, Exchange rates, Foreign exchange, Public sector, Real exchange rates

Keywords: Balance of payments, Central bank, Private sector, Rate of inflation, WP

Publication Details

Pages:

26
Volume:

---
DOI:

---
Issue:

---
Series:

Working Paper No. 1990/090
Stock No:

WPIEA0901990
ISBN:

9781451951851
ISSN:

1018-5941

Notes

Also published in Staff Papers, Vol. 38, No. 3, September 1991.

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

IMF Working Papers