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Commodity Export Prices and the Real Exchange Rate in Developing Countries : Coffee in Colombia
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Year: 1985 Publisher: Cambridge, Mass. National Bureau of Economic Research

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Abstract

In this paper a model that analyzes the interaction between changes in commodity export prices, money creation, inflation, and the real exchange rate in a developing country is developed. The model is then tested using data for Colombia. A number of experts have argued that the fluctuations of Colombia's real exchange rate have been mainly determined by world coffee price changes, with more observers emphasizing the consequences of coffee price changes on money creation and inflation. The results obtained indicate that coffee price changes have indeed been closely related to money creation and inflation. Also, coffee price changes have been negatively related to the rate of devaluation of the crawling peg. These results indicate that in Colombia, the real appreciation resulting from coffee price increases has been accommodated, partially by money creation and partially by an adjustment in the nominal exchange rate.


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World Economic Outlook, October 1985 Revised Projections.
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ISBN: 1463972970 1463925085 1451943482 Year: 1985 Publisher: Washington, D.C. : International Monetary Fund,

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This paper highlights that there have been increasing signs of hesitancy in the pace of world economic expansion in the first half of 1985. In the United States, output growth declined to an average of 1 percent (at an annual rate) in the first two quarters of the year from 5.7 percent during 1984, and in other industrial countries, the pace of recovery was also generally subdued. Commodity prices fell significantly, thus weakening growth prospects in many developing countries.


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Trends and issues in foreign direct investment and related flows : a technical paper
Authors: ---
ISBN: 9211041708 Year: 1985


Book
Théories de l'investissement direct étranger
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ISBN: 2717808469 9782717808469 Year: 1985 Publisher: Paris Economica


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World Economic Outlook, April 1985.
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ISBN: 1463968388 1463935587 145192299X Year: 1985 Publisher: Washington, D.C. : International Monetary Fund,

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This paper highlights that the performance of the world economy in 1984 turned out to be considerably better than had been expected at the beginning of the year. Output grew robustly in the industrial countries, especially in the United States and Japan; inflation continued to decline; and developing countries saw a noteworthy improvement both in their balance-of-payments position and in their domestic growth performance. Fears that the debt situation might deteriorate did not materialize.


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Finance & Development, September 1985.
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ISBN: 1463982364 1463982356 1616353627 Year: 1985 Publisher: Washington, D.C. : International Monetary Fund,

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This paper highlights that international flows of capital can promote global economic efficiency and can allow countries with balance-of-payments deficits to strike the right balance between reducing their deficits and financing them. The IMF's evolution into an effective international organization is largely attributable to its ability to adapt its activities, policies, policymaking bodies, procedures, and even its Articles in response to changing circumstances. The growth of developed and developing countries is closely linked, but better policy coordination and financial intermediation are needed.


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Finance & Development, June 1985.
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ISBN: 1463981732 1463981724 1616353619 Year: 1985 Publisher: Washington, D.C. : International Monetary Fund,

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The analysis and adjustment of government expenditure in less developed countries is discussed. A better balance between supply and demand in the public sector can be achieved by raising budgetary revenues, or by cutting budgetary expenditures, or by some combination of both. The IMF devotes considerable attention to assisting countries to make their tax systems more buoyant, to reduce the disincentive effects of taxation, and to administer their tax systems more effectively. Government expenditure policies are often important elements in programs of external adjustment supported by the IMF.


Book
Adjustment Programs in Africa : The Recent Experience
Authors: ---
ISBN: 1462323960 1452741905 Year: 1985 Publisher: Washington, D.C. : International Monetary Fund,


Book
l'agriculture en Chine : perspectives pour la production et les échanges
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ISBN: 9264227415 9789264227415 Year: 1985

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