01650cas a2200241 a 4500 AALejournalIMF001183 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451848410 1018-5941 BD-DhAAL BD-DhAAL Lim, G. Misalignment and Managed Exchange Rates : An Application to the Thai Baht / G. Lim. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (28 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 This paper proposes a methodology for analyzing dynamic misalignment in managed exchange rate systems that combines the estimation approach to modeling the real exchange rate with the calibration approach to generating the equilibrium real exchange rate. The methodology is applied to the Thai baht and the model is estimated using only pre-July 1997 data. An analysis of the difference between the evolution of the actual real exchange rate and the generated equilibrium rate - the misalignment gap - reveals the extent to which the market was persistently factoring in an expected depreciation of the Thai baht. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2000/063 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/063/001.2000.issue-063-en.xml IMF e-Library