Estimating Equilibrium Exchange Rates for Armenia and Georgia

Author/Editor:

Omar Al Shehabi ; Shuang Ding

Publication Date:

April 1, 2008

Electronic Access:

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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:

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. 08/110

Subject:

English

Publication Date:

April 1, 2008

ISBN/ISSN:

9781451869705/1018-5941

Stock No:

WPIEA2008110

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

21

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