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Publication Type
Journal Article
UWI Author(s)
Author, Analytic
King, Damien
Author Affiliation, Ana.
Economics; Faculty of Social Sciences
Article Title
Macroeconomic adjustment in externally-dependent economies with parallel exchange markets
Medium Designator
n/a
Connective Phrase
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Journal Title
Social and Economic Studies
Translated Title
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Reprint Status
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Date of Publication
1994
Volume ID
43
Issue ID
1
Page(s)
43-70
Language
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Connective Phrase
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Location/URL
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ISSN
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Notes
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Abstract
Developes a model of the macroeconomic response to a monetary shock in an externally-dependent economy with a black market for foreign exchange. A model of the currency substitution genre is used to describe how monetary signals may be transmitted through a black market rate and the supply side of the economy to real output. The model demonstrates that monetary contraction may have an expansionary supply-side influence, and that this effect is stronger in the more dependent economies. The model also shows that devaluation is not neutral with respect to the black market premium.....
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Keywords
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