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Estimating Iceland's Real Equilibrium Exchange Rate

Author

Listed:
  • Robert Tchaidze

    (International School of Economics at Tbilisi State University)

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

  • Robert Tchaidze, 2008. "Estimating Iceland's Real Equilibrium Exchange Rate," Working Papers 007-08, International School of Economics at TSU, Tbilisi, Republic of Georgia.
    • Handle: RePEc:tbs:wpaper:08-007
    as

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    File URL: https://iset.tsu.ge/files/007-08.pdf
    File Function: First version, 2008
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    References listed on IDEAS

    as
    1. Mr. Peter Isard & Mr. Hamid Faruqee, 1998. "Exchange Rate Assessment: Extension of the Macroeconomic Balance Approach," IMF Occasional Papers 1998/012, International Monetary Fund.
    2. repec:imf:imfops:2001/006 is not listed on IDEAS
    3. International Monetary Fund, 2005. "New Rates from New Weights," IMF Working Papers 2005/099, International Monetary Fund.
    4. Tamim Bayoumi & Jaewoo Lee & Sarma Jayanthi, 2006. "New Rates from New Weights," IMF Staff Papers, Palgrave Macmillan, vol. 53(2), pages 1-4.
    5. Lane, Philip R. & Milesi-Ferretti, Gian Maria, 2007. "The external wealth of nations mark II: Revised and extended estimates of foreign assets and liabilities, 1970-2004," Journal of International Economics, Elsevier, vol. 73(2), pages 223-250, November.
    6. Lane, Philip & Milesi-Ferretti, Gian Maria, "undated". "External Wealth of Nations," Instructional Stata datasets for econometrics extwealth, Boston College Department of Economics.
    Full references (including those not matched with items on IDEAS)

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