Estimating Iceland's Real Equilibrium Exchange Rate

 
Author/Editor: Tchaidze, Robert
 
Publication Date: December 01, 2007
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: Given recent developments in Iceland, this paper evaluates its real exchange rate disequilibrium. It discusses three approaches to estimating the equilibrium values and suggests that the adjustment needed to bring the real exchange rate in line with fundamentals is in the range of 15-25 percent, although timing and manner of this adjustment is unclear.
 
Series: Working Paper No. 07/276
Subject(s): Real effective exchange rates | Iceland | Commodities | Trade

Author's Keyword(s): Real Exchange Rate | Disequilibrium
 
English
Publication Date: December 01, 2007
Format: Paper
Stock No: WPIEA2007276 Pages: 17
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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