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This paper analyzes the macroeconomics of currency inconvertibility, building on the role of relative prices in a portfolio balance model. The relationship between black markets for foreign exchange and smuggling is first analyzed from the perspective of an individual importer. According to the...
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This paper analyzes the macroeconomics of currency inconvertibility, building on the role of relative prices in a portfolio balance model. The relationship between black markets for foreign exchange and smuggling is first analyzed from the perspective of an individual importer. According to the...
Persistent link: https://www.econbiz.de/10012477514
's Convertibility Plan "Currency Board" system) brought price stability and growth to the country, the inability or unwillingness of the … finance, was left unresolved through the rapid growth of indebtedness under the Convertibility Plan. From 1999 on the …
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