TITLE

Exchange rate dynamics in Indonesia: 1980–1998

AUTHOR(S)
Saxena, Sweta Chaman
PUB. DATE
July 2002
SOURCE
Journal of Asian Economics;Jul2002, Vol. 13 Issue 4, p545
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This paper estimates the equilibrium level of the real exchange rate for Indonesia in order to measure the extent of overvaluation of the rupiah at the time of the Asian crisis in 1997. The equilibrium level of the real exchange rate is measured using co-integration approach, unobserved component model and structural vector autoregression (SVAR). The paper uses these models to analyze the developments in the exchange rate policy. None of the models support overvaluation of the rupiah to justify the massive depreciation in 1997.
ACCESSION #
8550005

 

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