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In Search of a Dramatic Equilibrium: Was the Armenian Dram Overvalued?
Author: Nienke Oomes, Vahram Stepanyan, Gohar Minasyan, and Ara Stepanyan
Series:
IMF Working Papers
Volume/Issue:
Volume 2009: Issue 049
Language:
English
Publication Date:
01 Mar 2009
DOI:
https://doi.org/10.5089/9781451871975.001
ISBN:
9781451871975
ISSN:
1018-5941
Pages:
22
Keywords:
WP; exchange rate; Real exchange rate; misalignment; competitiveness; Balassa-Samuelson; productivity differential; equilibrium exchange rate path; trade partner; equilibrium exchange rate determinant; PPP approach; Real exchange rates; Productivity; Exchange rates; Purchasing power parity; Real effective exchange rates; Middle East; Eastern Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund