Estimating Equilibrium Exchange Rates for Armenia and Georgia

WPIEA2008110 Image
Price:  $18.00

Author/Editor: Omar Al Shehabi, Shuang Ding
Release Date: © April, 2008
ISBN : 978-1-45186-970-5
Stock #: WPIEA2008110
English
Stock Status: Available

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Description

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.




More publications in this series: Working Papers


More publications by: Omar Al Shehabi ; Shuang Ding