Note Authors’ note Underlying the existence of multiple exchange rates is the operation of segmented markets. The Central Bank classifies transactions with nonresidents in different categories, each using a different exchange rate. Administrative controls of foreign exchange reserves rule out the pursuit of arbitrage opportunities. The operation of multiple exchange rates requires from economic agents […]
Operational Issues Of Currency Unification In Cuba: A Note
Authors’ notes , Currency unification and multiple exchange rates are probably among the most discussed topics by macroeconomists doing research on the Cuban economy. For instance, Di Bella and Wolfe (2008) describe the main challenges related to currency unification, look at possible exchange rate system choices, and provide a detailed analysis of possible stock and […]
The Venezuela Risks for PetroCaribe and Alba Countries
Notes1 This study models the debt dynamics currently at play in the Venezuelan economy that are increasing the short-run risks of a debt crisis in that country. The inevitable interruption of subsidized oil exports that would result from such a crisis could deal a devastating blow to the Cuban economy, as well as the rest […]
Transition Policies Twenty Years Later: Lessons for the Case of Cuba
Notes1 Economic outcomes have differed widely across the countries that have transitioned away from centrally planned economies. Since 1989, the centrally planned economies of Eastern Europe and the former Soviet Union have moved to dismantle centralized control and allow market mechanisms to allocate resources to differing degrees and at different paces. This paper looks back […]
Cuba: Economic Growth, Aging, and Long-Term Fiscal Sustainability
Notes1 Social security is at the center of the economic debate in most of the world. The intense population aging occurring in many advanced countries of Europe and Asia is causing social security finances to be under severe pressure, threatening fiscal sustainability. In Latin America and the Caribbean, the presence of relative young populations has […]