01650cas a2200241 a 4500 AALejournalIMF003175 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451824544 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. Republic of Latvia : Selected Issues. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (46 pages) IMF Staff Country Reports <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 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. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2004/261 Full text available on IMF http://elibrary.imf.org/view/journals/002/2004/261/002.2004.issue-261-en.xml IMF e-Library