Front Matter Page
African Department
Contents
I. Introduction
II. Empirical Studies of the Price Impact of a Devaluation
III. The Model
IV. Effects of a Devaluation: Simulation Exercises
1. The reduced-form multiplier for domestic prices, linearized model
2. Effects on prices, volumes, and income: solution of linearized model
a. Exogenous real wage
b. Endogenous real wage
3. Effects on prices, volumes, and income: approximate solution of nonlinear model
V. The Equilibrium Real Exchange Rate
VI. Conclusions
Appendices
I. The Linearized Model
II. Derivation of Reduced-Form Multiplier for Domestic Prices
III. A Method to Reduce the Linearization Error
References
Tables
1. Structural Characteristics and Key Elasticities of Five African Economies
2. Survey of Empirical Estimates of Price Elasticities
3. Inflationary Impact of a Devaluation in Five African Countries: Reduced Form Linearized Model
4. Price, Volume, and Income Effects of a Devaluation in Five African Countries: Solution Linearized Model, Exogenous Real Wage
5. Reduced-Form Multipliers for the Domestic Price Level in Two African Countries
6. Price, Volume, and Income Effects of a Devaluation in Five African Countries: Solution Linearized Model, Endogenous Real Wage
7. Price, Volume, and Income Effects of a Devaluation in One African Country: Reducing the Linearization Error (Exogenous Real Wage)
8. Equilibrium Real Exchange Rate in Two African Countries