Abstract
STAFF PAPERS
Title Page
STAFF PAPERS
Bahram Nowzad, Editor
James Mceuen
Assistant Editor
Editorial Committee
Bahram Nowzad, Chairman
Bijan B. Aghevli
G. Russell Kincaid
Mario I. Blejer
Malcolm D. Knight
W. Max Corden
Paul R. Masson
Morris Goldstein
Thomas M. Reichmann
Peter S. Heller
V. Sundararajan
Mohsin S. Khan
Subhash M. Thakur
Among the responsibilities of the International Monetary Fund, as set forth in its Articles of Agreement, is the obligation to “act as a center for the collection and exchange of information on monetary and financial problems.” Staff Papers makes available to a wider audience papers prepared by the members of the Fund staff. The views presented in the papers are those of the authors and are not to be interpreted as necessarily indicating the position of the Executive Board or of the Fund. The authors have received considerable assistance from their colleagues on the staff of the Fund, and this general statement of indebtedness should be accepted in place of a detailed list of acknowledgments.
To facilitate electronic storage and retrieval of bibliographic data. Staff Papers has adopted the subject classification scheme developed by the Journal of Economic Literature.
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Copyright
EDITOR’S NOTE
The Editor invites from contributors outside the Fund brief comments (not more than 1,000 words) on published articles in Staff Papers. These comments should be addressed to the Editor, who will forward them to the author of the original article for reply. Both the comments and the reply will be considered for publication.
The term “country,” as used in this publication, may not refer to a territorial entity that is a state as understood by international law and practice; the term may also cover some territorial entities that are not states but for which statistical data are maintained and provided internationally on a separate and independent basis.
© 1988 by the International Monetary Fund
International Standard Serial Number: ISSN 0020-8027
The U.S. Library of Congress has cataloged this serial publication as follows:
International Monetary Fund
Staff papers — International Monetary Fund. v. 1– Feb. 1950-[Washington] International Monetary Fund.
v. tables, diagrs. 23 cm.
Three no. a year. 1950–1977; four no. a year. 197S–lndexes:
Vols. 1-27, 1950-80, 1 v.
ISSN 0020-8027 = Staff papers — International Monetary Fund.
1. Foreign exchange—Periodicals. 2. Commerce—Periodicals. 3. Currency question—Periodicals.
HG3810.15 332.082 53-35483
Contents
An International Debt Facility?
W. MAX CORDEN • 401
Capital Flight: A Response to Differences in Financial Risks
MICHAEL P. DOOLEY • 422
Dual Exchange Rates in the Presence of Incomplete Market Separation: Long-Run Effectiveness and Policy Implications
DANIEL GROS • 437
Costly Trade Liberalizations: Durable Goods and Capital Mobility
GUILLERMO A. CALVO • 461
Financial, Exchange Rate, and Wage Policies in Singapore, 1979–86
ICHIRO OTANI and CYRUS SASSANPOUR • 474
Social Security Issues in Developing Countries: The Latin American Experience
G.A. MACKENZIE • 496
Shorter Papers and Comments
The Case for Earmarked Taxes
RANJIT S. TEJA • 523
Islamic Interest-Free Banking and 100 Percent Money: Comment on Khan
ERVIN JOHN DOAK • 534
Islamic Interest-Free Banking: Reply to Doak
MOHSIN S. KHAN • 537