Exchange Market Reform, Inflation, and Fiscal Deficits
| Autor: | Pierre-Richard Agénor, E. Murat Ucer |
|---|---|
| Rok vydání: | 1995 |
| Předmět: |
Inflation
media_common.quotation_subject Money supply Developing country Grey market Subsidy Monetary economics India Guyana Kenya Jamaica Sierra Leone Sri Lanka foreign exchange exchange rate parallel exchange rate official exchange rate Sierra leone Inflation tax Float (money supply) Exchange rate Economics General Earth and Planetary Sciences The Conceptual Framework Market reform Sri lanka General Environmental Science media_common |
| Zdroj: | IMF Working Papers. 95:i |
| ISSN: | 1018-5941 |
| DOI: | 10.5089/9781451850062.001 |
| Popis: | This paper examines the effects of exchange market reform on inflation and quasifiscal deficits in developing countries. The first part presents the conceptual framework, which identifies a variety of implicit taxes and subsidies that must be taken into account (in addition to implicit taxes on exports, as emphasized by Pinto (1991)) in assessing the fiscal and inflationary effects of exchange market reform. A formula that attempts to capture explicitly these taxes and subsidies is derived. The second part applies the formula to six countries (Guyana, India, Jamaica, Kenya, Sierra Leone, and Sri Lanka). The results suggest that exchange market reform may lead to a significant reduction in reliance on the inflation tax. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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