TY - BOOK ID - 84540128 TI - Multiple Exchange Rates, Fiscal Deficits and Inflation Dynamics PY - 1996 SN - 1462304613 1455202053 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banking KW - Banks and Banking KW - Central Banks and Their Policies KW - Currency KW - Deflation KW - Economics of specific sectors KW - Economics KW - Exchange rates KW - Fiscal Policy KW - Foreign Exchange KW - Foreign exchange KW - Inflation KW - Informal Economy KW - Informal economy KW - Informal sector KW - Macroeconomics KW - Monetary base KW - Monetary economics KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - Money and Monetary Policy KW - Money supply KW - Price Level KW - Prices KW - Quasi-fiscal operations KW - Underground Econom UR - https://www.unicat.be/uniCat?func=search&query=sysid:84540128 AB - The paper explores the inflationary implications of exchange rate regime reforms in a small open economy model combining the public finance view of inflation with multiple exchange markets. To account for the experience of many developing countries, the analysis focuses on transitions to multiple official exchange markets. In those countries, multiple exchange rates were often announced as temporary. The paper shows that the dynamic response of inflation to the reform markedly differ whether the announcement is credible or not. The paper also compares the response of inflation under a fixed crawl of nominal official rates and under the presence of policy rules aimed at reducing the spread between the official and parallel exchange rates. ER -