Author : Mr.Jian-Ye Wang
Publisher : International Monetary Fund
ISBN 13 : 1451942885
Total Pages : 26 pages
Book Rating : 4.4/5 (519 download)
Book Synopsis Macroeconomic Policies and Smuggling by : Mr.Jian-Ye Wang
Download or read book Macroeconomic Policies and Smuggling written by Mr.Jian-Ye Wang and published by International Monetary Fund. This book was released on 1994-09-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on a simple model, the paper provides an explanation for illegal oil trade between Nigeria and its neighboring countries. The analysis focuses on the linkages between the level of smuggling and changes in the Government’s fiscal, monetary, and domestic pricing policies. It is shown that smuggling has implications for inflation and currency depreciation. A vicious circle emerges when financial policies are expansionary and policy makers attempt to hold the domestic sale price of oil constant. Macroeconomic indicators of Nigeria over the period 1986-1993 appear to support the predictions of the model. Policy implications of the analysis are also noted.