01789cas a2200241 a 4500 AALejournalIMF000243 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451968378 1018-5941 BD-DhAAL BD-DhAAL Bodart, Vincent. Multiple Exchange Rates, Fiscal Deficits and Inflation Dynamics / Vincent Bodart. Washington, D.C. : International Monetary Fund, 1996. 1 online resource (40 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1996/056 Full text available on IMF http://elibrary.imf.org/view/journals/001/1996/056/001.1996.issue-056-en.xml IMF e-Library