The purpose of this paper is to gain a better understanding of the black market premium--the percent differential between the black market and official exchange rate. We test to see whether the black market premium responds to variations in expectations about the official exchange rate in...

The purpose of this paper is to gain a better understanding of the black market premium--the percentage differential between the black market and the official exchange rate. Tests are used to see whether the black market premium responds to variations in expectations about the official exchange...

Open economy money demand functions for Singapore are estimated using quarterly data from 1973-1996. Variance decompositions derived from structural vector error correction models are used to test the effect of anticipated exchange rate movements and exchange rate uncertainty on money demand....