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Estimating Iceland’s Real Equilibrium Exchange Rate

Author

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  • Mr. Robert Tchaidze

Abstract

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.

Suggested Citation

  • Mr. Robert Tchaidze, 2007. "Estimating Iceland’s Real Equilibrium Exchange Rate," IMF Working Papers 2007/276, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2007/276
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=21466
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    Cited by:

    1. Ásgeir Daníelsson, 2009. "QMM. A steady state version," Economics wp44, Department of Economics, Central bank of Iceland.

    More about this item

    Keywords

    WP; REER; GDP;
    All these keywords.

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