Series: IMF Working Papers
Author(s): Philippe Beaugrand
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 May 2003
Keywords: Overshooting, Congo, Democratic Republic of, Za&;amp;#x00EF;re, inflation, foreign currency, money demand, monetary policy, central bank, Central Banking
The paper develops an interpretation of volatile exchange rate movements in a dollarized economy with very high rates of inflation. Differences between the rate of inflation and currency depreciation (over- or unde...