Schneider, Todd; Ltaifa, Nabil Ben; Ahmed, Faisal; … - International Monetary Fund (IMF) - 2007
This paper investigates the likely implications of declining oil production on Yemen's equilibrium exchange rate, and … with the equilibrium exchange rate. In light of strong pass-through from exchange rate depreciation to domestic inflation …, this could entail a substantial depreciation in nominal terms. Given the nature of the adjustment, a floating exchange rate …