If you are experiencing problems downloading PDF or HTML fulltext, our helpdesk recommend clearing your browser cache and trying again. If you need help in clearing your cache, please click here . Still need help? Email help@ingentaconnect.com

Collapsing exchange rate regimes in the presence of a parallel market

$54.78 plus tax (Refund Policy)

Buy Article:


This paper develops a model of an economy where the fixed exchange rate is overvalued and coexists with a parallel market for foreign currency. Such a situation persists because the parallel marker is used by the central authorities as an instrument to delay policy changes. Using the Haitian experience, this paper estimates a rationing parameter of foreign currency in the official market which translates the extent of tolerance of the parallel market. The paper also produces estimates of onestep-ahead probability of devaluation. Rationing has been severe and the probability of collapse has reached high levels during the period studied.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/000368400322282

Publication date: May 15, 2000

More about this publication?
Related content

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more