Is the Parallel Market Premium a Reliable Indicator of Real Exchange Rate Misalignment in Developing Countries PDF Download

Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Is the Parallel Market Premium a Reliable Indicator of Real Exchange Rate Misalignment in Developing Countries PDF full book. Access full book title Is the Parallel Market Premium a Reliable Indicator of Real Exchange Rate Misalignment in Developing Countries by Mr.Peter Montiel. Download full books in PDF and EPUB format.

Is the Parallel Market Premium a Reliable Indicator of Real Exchange Rate Misalignment in Developing Countries

Is the Parallel Market Premium a Reliable Indicator of Real Exchange Rate Misalignment in Developing Countries PDF Author: Mr.Peter Montiel
Publisher: International Monetary Fund
ISBN: 1451960352
Category : Business & Economics
Languages : en
Pages : 26

Book Description
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.
➤