In 1952, Alexander provided an argument that since inflationary effects of depreciation could shift income from workers to producers it could lead to a decline in aggregate domestic consumption. This was based on the assumption that wages do not adjust fully to inflation and labor has a high MPC...

The traditional way of assessing the impact of currency depreciation on the trade balance has been to estimate the elasticity of trade volume to relative prices. To this end, most previous studies used aggregate trade data. To shy away from problems associated with using aggregate data, recent...

The traditional way of assessing the impact of currency depreciation on the trade balance has been to estimate the import and export demand elasticities using aggregate trade data and check the Marshall–Lerner condition. To reduce the aggregation bias, the trend now is to estimate these...

Investigating the impact of institutional factors on macroeconomic variables has gained momentum in recent years. In this paper we investigate the impact of political rights and civil liberties on the black market premium on foreign exchange. After taking account of other important determinants...

Many of the previous studies that tried to assess the contractionary or expansionary effects of depreciations or devaluations in less developed countries (LDCs) used official exchange rate data and concluded that devaluations are contractionary in LDCs. However, due to capital controls, there is...