BAHMANI-OSKOOEE, MOHSEN; HEGERTY, SCOTT W.; TANKU, ALTIN - In: Manchester School 78 (2010) 6, pp. 725-738
Many less developed countries have currency controls, which can lead to black-market trade and cause distortions in the exchange market. We test the flexible-price monetary model for 25 less developed countries, using both official and black-market exchange rates. We find that the model is...