{
  "title": "Exchange Market Reform, Inflation, and Fiscal Deficits",
  "publication": "IMF Working Papers, August 1, 1995",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/exchange-market-reform-inflation-and-fiscal-deficits-1273",
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  "summary": "This paper examines the short- and long-run effects of exchange market reform in developing countries. The first part reviews the recent experience of Guyana, India, Jamaica, Kenya, Sierra Leone, and Sri Lanka with exchange market reform.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Examines the short- and long-run effects of exchange market reform in developing countries.\n- Structure of the paper:\n  - Part one: reviews recent experience of Guyana, India, Jamaica, Kenya, Sierra Leone, and Sri Lanka with exchange market reform.\n  - Part two: studies analytically the short-run dynamics of the parallel market premium and the money supply upon unification, when the post-reform regime consists of either a pure float or a managed float.\n  - Part three: discusses the impact of unification on inflation and quasi-fiscal deficits, and identifies a variety of implicit taxes and subsidies that must be taken into account in assessing the longer-run effects of exchange market reform."
    },
    {
      "heading": "Case studies reviewed",
      "content": "- Countries explicitly reviewed:\n  - Guyana\n  - India\n  - Jamaica\n  - Kenya\n  - Sierra Leone\n  - Sri Lanka"
    },
    {
      "heading": "Analytical findings and focus",
      "content": "- Short-run dynamics analyzed:\n  - Parallel market premium upon unification\n  - Money supply behavior upon unification\n- Post-reform exchange rate regimes considered:\n  - Pure float\n  - Managed float"
    },
    {
      "heading": "Impact on inflation and fiscal/quasi-fiscal deficits",
      "content": "- Discusses:\n  - Impact of unification on inflation\n  - Impact of unification on quasi-fiscal deficits\n  - Identification of implicit taxes and subsidies relevant for longer-run assessment of exchange market reform"
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject areas:\n  - Currency markets\n  - Exchange rate arrangements\n  - Exchange rates\n  - Financial markets\n  - Foreign exchange\n  - Multiple currency practices\n- Keywords include:\n  - adjustable peg\n  - cambio market\n  - central bank\n  - Currency markets\n  - exchange market intervention\n  - exchange market reform\n  - exchange rate\n  - Exchange rate arrangements\n  - exchange rate system\n  - Exchange rates\n  - implementation of exchange market reform\n  - market rate\n  - money stock\n  - Multiple currency practices\n  - net effect of exchange market reform\n  - parallel exchange rate\n  - paralllel market premium\n  - price volatility\n  - Sub-Saharan Africa\n  - WP\n\n---\n\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/exchange-market-reform-inflation-and-fiscal-deficits-1273"
    }
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    "Authors: E. Murat Ucer, Pierre-Richard Agénor",
    "Published: August 1, 1995",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451850062.001",
    "Examines the short- and long-run effects of exchange market reform in developing countries.",
    "Structure of the paper:",
    "Countries explicitly reviewed:",
    "Short-run dynamics analyzed:",
    "Post-reform exchange rate regimes considered:",
    "Discusses:",
    "Subject areas:",
    "Keywords include:"
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