Republic of Latvia: Selected Issues

Author: International Monetary Fund

Volume/Issue: Volume 2004 Issue 261

Publication date: August 2004

ISBN: 9781451824544

$20.00

Add to Cart by clicking price of the language and format you'd like to purchase

Available Languages and Formats


English

Prices in red indicate formats that are not yet available but are forthcoming.

Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Banks and Banking , Exports and Imports , Economics- Macroeconomics , Money and Monetary Policy , ISCR , CR , exchange rate , deficit , revenue elasticity , fiscal policy stance , GDP assumption , price level , production function approach , Credit , Fiscal stance , Exchange rates , Inflation , Potential output , Baltics , Eastern Europe

Also of interest

Peru

Nepal

Grenada

Republic of Congo : 2001 Article IV

Summary

This Selected Issues paper assesses whether Latvia’s strategy to enter ERM2 and adopt the euro is appropriate. The paper examines the possibility of an exchange rate misalignment from various perspectives. It considers different notions of the real effective exchange rate and competitiveness; deviations of the exchange rate from statistically defined equilibrium concepts; and the possibility that central bank foreign exchange interventions have maintained the exchange rate artificially away from equilibrium. The paper finds little evidence of a major misalignment. The paper also analyzes modeling inflation in Latvia.