IMF Working Papers

A General Equilibrium Model with Informal Financial Markets

February 1, 1991

Preview Citation

Format: Chicago

A General Equilibrium Model with Informal Financial Markets, (USA: International Monetary Fund, 1991) accessed November 7, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper presents a general equilibrium framework for short-run macroeconomic analysis in a developing country context where controls on interest rates and foreign exchange restrictions lead to the emergence of informal financial markets. The complexity of the model precludes an analytical treatment. A simulation approach, based on parameters derived from estimates in the existing literature, is used to assess the properties of the model, which differ in important ways from those of standard open-economy models.

Subject: Bank credit, Commercial banks, Currency markets, Exchange rates, Foreign assets

Keywords: Central bank, Foreign currency, Interest rate, WP

Publication Details

  • Pages:

    50

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1991/018

  • Stock No:

    WPIEA0181991

  • ISBN:

    9781451843576

  • ISSN:

    1018-5941