1 option
Is the Parallel Market Premium a Reliable Indicator of Real Exchange Rate Misalignment in Developing Countries / Jonathan Ostry, Peter Montiel.
- Format:
- Book
- Government document
- Author/Creator:
- Ostry, Jonathan.
- Series:
- IMF Working Papers; Working Paper ; No. 1993/070
- IMF Working Papers
- Language:
- English
- Physical Description:
- 1 online resource (26 pages)
- Place of Publication:
- Washington, D.C. : International Monetary Fund, 1993.
- Language Note:
- English
- Summary:
- It is often argued that the parallel market premium is a useful indicator of real exchange rate misalignment in developing countries. The empirical evidence does not, however, suggest the existence of a robust correlation between these two endogenous variables that is independent of the nature of economic shocks and various structural relationships in the economy. This paper presents an analytical investigation of the reliability of the parallel market premium as an indicator of real exchange rate misalignment in the context of a fully optimizing model of a developing country. The analysis suggests that one should exercise caution in drawing inferences about the sign and magnitude of real exchange rate misalignment from the parallel market premium.
- Notes:
- Bibliographic Level Mode of Issuance: Monograph
- Description based on print version record.
- ISBN:
- 9781455297924
- 1455297925
- 9781462345960
- 1462345964
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.