01686cas a2200241 a 4500 AALejournalIMF001672 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451979206 1018-5941 BD-DhAAL BD-DhAAL Rojas-Suarez, Liliana. Currency Substitution and Inflation in Peru / Liliana Rojas-Suarez. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (46 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 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 holdings of money in Peru. The paper also shows that, while the importance of currency substitution as a transmission mechanism through which domestic policies affected the dynamics of inflation was relatively small during a period of high but relatively stable inflation (January 1978-85), it became an important factor in the inflation process during the recent hyperinflation episode. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1992/033 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/033/001.1992.issue-033-en.xml IMF e-Library