01881cas a2200253 a 4500 AALejournalIMF002188 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451972269 1018-5941 BD-DhAAL BD-DhAAL Taylor, Mark. Deer Hunting : Misalignment, Debt Accumulation, and Desired Equilibrium Exchange Rates / Mark Taylor, Michael Artis. Washington, D.C. : International Monetary Fund, 1993. 1 online resource (36 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 deals with hysteresis in the desired equilibrium exchange rate (DEER) arising from misalignment. When the actual real exchange rate departs from its DEER value, current account realizations--and consequently, debt service obligations--will differ from those assumed in the initial DEER calculation, necessitating its recomputation. The paper derives a formal expression for this hysteresis effect in the DEER, studies the convergence properties of a system in which the evolution of actual exchange rates depends on the DEER and provides illustrative calculations of its historical significance. Finally, the paper derives and applies rules of thumb for computing the hysteresis effect when considering the rate of approach of an exchange rate to its DEER value. Mode of access: Internet Artis, Michael. IMF Working Papers; Working Paper ; No. 1993/048 Full text available on IMF http://elibrary.imf.org/view/journals/001/1993/048/001.1993.issue-048-en.xml IMF e-Library