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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 (Undersecretariat of Customs of Turkey)
Sweta C. Saxena (University of Pittsburgh)
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There is a consensus among scholars that overvalued exchange rates result in currency crises. This paper estimates the equilibrium real exchange rate for Turkey and finds 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 the Turkish exporters that 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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Paper provided by EconWPA in its series International Finance with number
0508002.
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Length: 13 pages
Date of creation: 07 Aug 2005Date of revision:
Handle: RePEc:wpa:wuwpif:0508002Note: Type of Document - pdf; pages: 13Contact details of provider: Web page: http://129.3.20.41
For technical questions regarding this item, or to correct its listing, contact: (EconWPA).
Keywords: Turkish lira ; overvaluation ; equilibrium real exchange rate ; misalignment ; Other versions of this item:
Find related papers by JEL classification: F1 - International Economics - - Trade F3 - International Economics - - International Finance F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
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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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