Series: IMF Working Papers
Author(s): Valerie Cerra
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 03 August 2016
Keywords: inflation; black market; exchange rate; Venezuela; foreign exchange rationing; scarcity; cash in advance constraint; oil revenue; fiscal dominance
This paper presents a stylized general equilibrium model of the Venezuelan economy. The model explains how the recent sharp fall in oil revenue combines with foreign exchange rationing to produce a steep rise in in...