Series: IMF Working Papers
Author(s): Sweta Saxena , and Valerie Cerra
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 October 2000
Keywords: Currency Crisis, Equilibrium Exchange Rate, Error Correction Model, Gonzalo-Granger decomposition, exchange rate, real exchange rate, current account, current account deficits
Did real overvaluation contribute to the 1991 currency crisis in India? This paper seeks an answer by constructing the equilibrium real exchange rate, using an error correction model and a technique developed by Go...