Estimating Equilibrium Exchange Rates for Armenia and Georgia
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Summary:
The significant real exchange rate appreciation in Armenia and Georgia since 2003, coupled with persistent current account deficits, raises the question of whether real exchange rates have become overvalued. This paper seeks to identify possible exchange rate misalignment by applying the behavioral equilibrium exchange rate approach, complemented by an analysis of the traditional competitiveness indicators. The results indicate an undervaluation of the Armenian dram and no significant misalignment of the Georgian lari in 2006.
Series:
Working Paper No. 2008/110
Subject:
Current account balance Exchange rates Real effective exchange rates Real exchange rates Terms of trade
English
Publication Date:
April 1, 2008
ISBN/ISSN:
9781451869705/1018-5941
Stock No:
WPIEA2008110
Pages:
21
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