01798cas a2200241 a 4500 AALejournalIMF001024 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451854251 1018-5941 BD-DhAAL BD-DhAAL Chinn, Menzie. Measuring Misalignment : Purchasing Power Parity and East Asian Currencies in the 1990s / Menzie Chinn. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The concept of purchasing power parity (PPP) is used to evaluate whether eight East Asian currencies were overvalued on the eve of the 1997 crises. The Johansen and Horvath-Watson cointegration test procedures are applied to bilateral and multilateral exchange rates, deflated using CPIs, producer price indices (PPIs), and price indices of export goods. The second deflator yields the greatest evidence of 'stationarity.' The study find's that the Malaysian, Philippines, and Thai currencies were overvalued, while the Korean and Indonesian were substantially undervalued. Mixed results were obtained for the others. Measures of the equilibrium rate based on time trends in CPI-deflated rates typically suggest larger overvaluations. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1999/120 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/120/001.1999.issue-120-en.xml IMF e-Library