Template-Type: ReDIF-Paper 1.0
Author-Name: Viktors Ajevskis
Author-X-Name-First: Viktors
Author-X-Name-Last: Ajevskis
Author-Workplace-Name: Bank of Latvia
Author-Name: Ramune Rimgailaite
Author-X-Name-First: Ramune
Author-X-Name-Last: Rimgailaite
Author-Workplace-Name: Bank of Latvia
Author-Name: Uldis Rutkaste
Author-X-Name-First: Uldis
Author-X-Name-Last: Rutkaste
Author-Workplace-Name: Bank of Latvia
Author-Name: Olegs Tkacevs
Author-X-Name-First: Olegs
Author-X-Name-Last: Tkacevs
Author-Workplace-Name: Bank of Latvia
Title: The Assesment of Equilibrium Real Echange Rate of Latvia
Abstract: The aim of this study is to estimate the equilibrium REER of Latvia, which was done by using different methodologies, including IMF CGER approach, and the NATREX and SVAR models. The IMF methodology implies the application of three different methods: the macroeconomic balance method, the external sustainability method and the reduced-form equilibrium real exchange rate method. The results of all approaches used in this study indicate that the real exchange rate of Latvia, after appreciation during the boom years and subsequent adjustment afterwards, remained close to its equilibrium level at the end of the sample period, i.e. at end-2010.
Creation-Date: 2012-09-03
File-URL: https://www.bank.lv/images/stories/pielikumi/publikacijas/petijumi/WP4-2012_Assesment_of_equilibrium.pdf
File-Format: Application/pdf
File-URL: https://www.macroeconomics.lv/sites/default/files/wp4-2012_assesment_of_equilibrium.pdf
File-Format: Application/pdf
Number: 2012/04
Classification-JEL: F31, F32, O24
Keywords: equilibrium real exchange rate, BEER, macroeconomic balance, external sustainability, NATREX, SVAR, Latvia
X-File-Ref: https://repec.bank.lv/refs/wpaper201204.txt
Handle: RePEc:ltv:wpaper:201204