Currency Substitution and Inflation in Peru

Preprint OPEN
Liliana Rojas-Suárez;
  • Subject: Currency substitution;Economic models;Inflation;Peru;exchange rate, inflation rate, monetary policy

This paper shows that there is a long-run relationship between the expected rate of depreciation in the black-market-exchange rate and the ratio of domestic to foreign money in Peru; that is, the hypothesis of currency substitution can explain the behavior of real holdi... View more
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