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Foreign Exchange Queues, Informal Traders, and a Zero Premium in the Black Market [electronic resource] : A Cape Verdean Puzzle, Olters, Jan-Peter.

Author/Creator:
Olters, Jan-Peter.
Publication:
Washington, D.C. : International Monetary Fund, 1999.
Format/Description:
Government document
Book
1 online resource (31 p.)
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 99/110.
IMF Working Papers; Working Paper No. 99/110
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Local subjects:
Aggregate demand. (search)
Black market. (search)
Changes in prices. (search)
Currency devaluation. (search)
Currency devaluations. (search)
Currency transfers. (search)
Effective exchange rate. (search)
Equilibrium exchange rate. (search)
Exchange controls. (search)
Exchange markets. (search)
Exchange rate. (search)
Exchange rate level. (search)
Exchange rate peg. (search)
Exchange rate premium. (search)
Exchange rate realignments. (search)
Exchange rate regime. (search)
Exchange rate risk. (search)
Exchange rate system. (search)
Exchange rates. (search)
Exchange reserves. (search)
Fixed exchange rate. (search)
Fixed exchange rate regime. (search)
Fixed exchange rate system. (search)
Fixed exchange rates. (search)
Fixed nominal exchange rate. (search)
Flexible exchange rates. (search)
Floating exchange rates. (search)
Foreign currency. (search)
Foreign exchange. (search)
Foreign exchange controls. (search)
Foreign exchange law. (search)
Foreign exchange market. (search)
Foreign exchange markets. (search)
Foreign exchange reserves. (search)
Foreign investment. (search)
Inflation. (search)
Inflation rate. (search)
Inflation rates. (search)
Monetary dynamics. (search)
Monetary policy. (search)
Money growth. (search)
Money supply. (search)
Nominal exchange rate. (search)
Nominal exchange rates. (search)
Nominal interest rate. (search)
Price elasticity. (search)
Real effective exchange rate. (search)
Real interest rate. (search)
Real output. (search)
Real rate of interest. (search)
Real rates. (search)
Cape Verde. (search)
Summary:
During 1996–98, several indicators hinted at the apparent unsustainability of Cape Verde’s exchange rate peg. The country, faced with a considerable backlog of approved but unmet applications for foreign currencies, tolerated a parallel market. Street traders, however, demanded only negligible premiums (if any at all) for foreign exchange. By integrating the emigrants’ transfer decisions into a basic Mundell-Fleming-type model, the author conjectures that this puzzle can be explained with the increasing use of transfer channels outside the banking system, leading to unrecorded inflows of foreign exchange. Analysis of the relevant balance of payments data appears to support this result.
Notes:
Description based on print version record.
Contributor:
Olters, Jan-Peter.
Other format:
Print Version:
ISBN:
1451853327:
9781451853322
ISSN:
1018-5941
Publisher Number:
10.5089/9781451853322.001
Access Restriction:
Restricted for use by site license.