In Search of a Dramatic Equilibrium: Was the Armenian Dram Overvalued?

 
Author/Editor: Oomes, Nienke ; Minasyan, Gohar ; Stepanyan, Ara
 
Publication Date: March 01, 2009
 
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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: This papers estimates the equilibrium exchange rate for Armenia using three different approaches: the purchasing power parity (PPP) approach, the behavioral equilibrium exchange rate (BEER) approach, and the external sustainability (ES) approach. All three approaches suggest that the dram was overvalued by about 20–30 percent prior to the devaluation of the dram in March 2009.
 
Series: Working Paper No. 09/49
Subject(s): Exchange rate appreciation | Armenia | Armenian dram | Purchasing power parity | Fiscal sustainability | Economic models

Author's Keyword(s): Real exchange rate | misalignment | competitiveness | Balassa-Samuelson
 
English
Publication Date: March 01, 2009
Format: Paper
Stock No: WPIEA2009049 Pages: 20
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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