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Misaligned? Overvalued?. The Untold Story of the Turkish Lira Author info | Abstract | Publisher info | Download info | Related research | Statistics Deniz Atasoy
Sweta C. Saxena
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Scholars agree that overvalued exchange rates result in currency crises. This paper estimates the equilibrium real exchange rate for Turkey, finding that the lira was indeed overvalued before the crises in 1994 and 2001. However, the actual real exchange rate is at present close to the equilibrium level, exposing the myth propagated by Turkish exporters that the lira's overvaluation is responsible for Turkey's uncompetitive exports. The paper also highlights the role for fiscal adjustment in macroeconomic stability.
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Article provided by M.E. Sharpe, Inc. in its journal Emerging Markets Finance and Trade .
Volume (Year): 42 (2006)
Issue (Month): 3 (May)
Pages: 29-45
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Handle: RePEc:mes:emfitr:v:42:y:2006:i:3:p:29-45Contact details of provider: Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=111024
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: equilibrium real exchange rate ; misalignment ; overvaluation ; Turkish lira ; Other versions of this item:
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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Égert, Balázs, 2005.
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