Occasional Papers

Exchange Rates and Economic Fundamentals: A Framework for Analysis

BySteven A. Symansky, Peter B. Clark, Leonardo Bartolini, Tamim Bayoumi

September 15, 1994

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Steven A. Symansky, Peter B. Clark, Leonardo Bartolini, and Tamim Bayoumi. Exchange Rates and Economic Fundamentals: A Framework for Analysis, (USA: International Monetary Fund, 1994) accessed 12/6/2025, https://doi.org/10.5089/9781557754516.084

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Summary

This paper summarizes the methods and types of indicators that are often employed, both insid and outside the IMF, to assess whether exchange rates are broadly in line with economic fundamentals.

Subject: Balance of payments, Competition, Current account, Exchange rates, Financial markets, Foreign exchange, Purchasing power parity, Real exchange rates

Keywords: Competition, cost, Current account, current account position, equilibrium exchange rate, exchange market intervention, exchange market pressure, exchange rate, Exchange rates, financial market condition, Global, misaligned exchange rate, nominal exchange rate, OP, Purchasing power parity, Real exchange rates