Capital controls, the dual exchange rate, and devaluation
نویسندگان
چکیده
منابع مشابه
Dual Exchange Rate Systems and Capital Controls: an Investigation
The welfare aspects of dual exchange rate systems are analyzed in this paper. The requirement that domestic linancial transactions with the rest of the world be undertaken at a special foreign exchange rate is found to be equivalent to levying a tariff on this class of international transactions. Hence, a dual exchange rate system and capital controls are shown to be essentially identical. In l...
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Many emerging market economies use alternative forms of capital controls. Often the use of capital controls is related to the defense of the exchange rate. This paper examines the welfare case for capital controls, and the interaction between capital controls and the exchange rate. The main question is whether capital controls may be justified, in order to gain independence in monetary policy, ...
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The consensus view is that capital controls can effectively lengthen the maturity composition of capital inflows and increase the independence of monetary policy but are not generally effective at reducing net inflows and influencing the real exchange rate. This paper presents empirical evidence that although capital controls may not directly affect the long-run equilibrium level of the real ex...
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E xchange rate is an important factor influencing price indices of exported goods of a country in different ways. Imported intermediate commodity is one of the important ways by which the change in exchange rate affects price indices of the exported goods. Using the input-output table of Iran for the year 2001, this paper investigates the impact of exchange rate devaluation on price ...
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Changes in the real exchange rate affect a country's balance of payments and international competitiveness, and its misalignment from the long-run equilibrium level usually creates imbalances in the macro economy. This is also important in countries with oil resources due to their foreign trade structure. Accordingly, due to the existence of few internal studies on the subject in selected count...
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ژورنال
عنوان ژورنال: Journal of International Economics
سال: 1986
ISSN: 0022-1996
DOI: 10.1016/0022-1996(86)90058-9