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

Nienke Oomes, Gohar Minasyan and Ara Stepanyan

No 09/49, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: Exchange rate appreciation; Armenia; Armenian dram; Purchasing power parity; Fiscal sustainability; Economic models (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba and nep-ifn
Date: 2009-03-19
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