By considering an economy in which there are traded and nontraded goods, wealth is held in the form of domestic money, bonds, or foreign bonds, and the foreign exchange market is of the dual rates regime with neutral intervention by the authorities, this paper shows that the financial exchange...

The role of institutions in economic growth has recently begun to receive greater attention in academic circles. Although the impact of institutions has been acknowledged by most, definitive conclusions still remain a question, particularly given the problem of endogeneity. We use panel least...