Estimating Iceland’s Real Equilibrium Exchange Rate
Electronic Access:
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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. 2007/276
Subject:
Current account Current account deficits Real effective exchange rates Real exchange rates Trade balance
English
Publication Date:
December 1, 2007
ISBN/ISSN:
9781451868395/1018-5941
Stock No:
WPIEA2007276
Pages:
17
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