Real Exchange Rate Misalignment in Azerbaijan

descriptionPublicationkeyboard_double_arrow_right Article , Other literature type , Preprint 01 Jan 2009 English Publisher:Elsevier BVJournal:SSRN Electronic Journal (eissn: 1556-5068,

Copyright policy )

Authors: Hasanov, Fakhri; Huseynov, Fariz;

doi: 10.2139/ssrn.1522297 , 10.2139/ssrn.1788664

Real Exchange Rate Misalignment in Azerbaijan

- Summary
- Subjects
- Metrics

Abstract

By using quarterly data from 2001-2007 and applying various approaches, we estimate real equilibrium exchange rate misalignment for Azerbaijani Manat (AZN) and find that AZN is slightly overvalued. Purchasing power parity approach does not explain the equilibrium exchange rate. However using behavioral and permanent equilibrium exchange rate approaches, we find that the relative productivity, terms of trade, trade openness, net foreign assets, government expenditures and oil prices are the main determinants of misalignment.

Related Organizations

George Washington University
United States
Economic Research Centre
Azerbaijan
Qafqaz University
Azerbaijan
National Research Council
Italy
North Dakota State University
United States

View all View all

Keywords

Real exchange rate; Misalignment; Azerbaijan; Manat, jel: jel:O24, jel: jel:F31, jel: jel:C22

Impact byBIP!

	selected citations These citations are derived from selected sources. This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).	1
	popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.	Average
	influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).	Average
	impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.	Average