Welfare Effects of Uzbekistan's Foreign Exchange Regime |
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Author:
| International Monetary Fund Staff, |
Series title: | IMF Working Papers |
ISBN: | 978-1-4623-0057-0 |
Publication Date: | Mar 2000 |
Publisher: | International Monetary Fund
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Book Format: | Ebook |
List Price: | USD $7.50 |
Book Description:
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In addition to transferring about 16 percent of GDP from exporters to importers, Uzbekistan’s quasi-fiscal multiple exchange rate regime generates identifiable welfare losses of 2-8 percent of GDP on import markets and up to 15 percent on export markets. These excess burdens have increased substantially with the growing difference of exchange rates. the welfare analysis allows some conclusions regarding the optimal reform strategy: (i) welfare losses will decline...
More DescriptionIn addition to transferring about 16 percent of GDP from exporters to importers, Uzbekistan’s quasi-fiscal multiple exchange rate regime generates identifiable welfare losses of 2-8 percent of GDP on import markets and up to 15 percent on export markets. These excess burdens have increased substantially with the growing difference of exchange rates. the welfare analysis allows some conclusions regarding the optimal reform strategy: (i) welfare losses will decline overproportionally as exchange rates unify; (ii) exchange rate unification should be supplemented by changing the explicit fiscal system; (iii) at a minimum, Uzbekistan would benefit from moving to an explicit fiscal regime.