In Search of a Dramatic Equilibrium: Was the Armenian Dram Overvalued?

By Nienke Oomes, Vahram Stepanyan, Gohar Minasyan, Ara Stepanyan

March 1, 2009

Preview Citation

Format: Chicago

Nienke Oomes, Vahram Stepanyan, Gohar Minasyan, and Ara Stepanyan. In Search of a Dramatic Equilibrium: Was the Armenian Dram Overvalued?, (USA: International Monetary Fund, 2009) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Exchange rates, Foreign exchange, Production, Productivity, Purchasing power parity, Real effective exchange rates, Real exchange rates

Keywords: Balassa-Samuelson, Competitiveness, Eastern Europe, Equilibrium exchange rate determinant, Equilibrium exchange rate path, Exchange rate, Exchange rates, Middle East, Misalignment, PPP approach, Productivity, Productivity differential, Purchasing power parity, Real effective exchange rates, Real exchange rate, Real exchange rates, Trade partner, WP

Publication Details

Pages:

22
Volume:

---
DOI:

---
Issue:

---
Series:

Working Paper No. 2009/049
Stock No:

WPIEA2009049
ISBN:

9781451871975
ISSN:

1018-5941

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

IMF Working Papers