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Reply to "Making sense of the Exchange Rate Depreciation-Tarron Khemraj."

The underground economy has rivaled the formal economy way back when I lived in Guyana.  The underground economy found fertile ground and sprouted deep roots when the PNC banned basic commodities and the economy went south.  Remittances and "off-book" business, contra-ban, etc became the mainstay of many in Guyana.  The artificial USD/GYD rate held by the PNC added fuel to the fire as illegal Cambios flourished.  The huckster trade was one such spin-off, and this was big!

So, in a nut-shell you PNCites, the underground was likely larger proportionally than what we see under the PPP!

FM
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