Estimating Equilibrium Exchange Rates for Armenia and Georgia

 
Author/Editor: Al Shehabi, Omar ; Ding, Shuang
 
Publication Date: April 01, 2008
 
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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(s): Armenia | Georgia | Exchange rate appreciation | Current account deficits

Author's Keyword(s): equilibrium exchange rates
 
English
Publication Date: April 01, 2008
Format: Paper
Stock No: WPIEA2008110 Pages: 21
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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