In the current period of devaluation pessimism, devaluation is often seen as an instrument to accommodate inflation instead of one to change the real exchange rate and support external balance. The authors argue that such pessimism has in some cases gone too far. The real exchange rate is an...

The authors examine the determinants of the parallel exchange rate for a cross-country sample of developing countries. The sample includes countries in which the parallel exchange rate is official (dual exchange rate systems) as well as those in which it is unofficial (black market). They base...

The optimal charge for road use is equal to variable costs for road maintenance, together with the costs road users impose on other road users and on the rest of society. One persistent question raised about such charges is what impact they have on cost recovery. The theoretical literature...