01705cas a2200241 a 4500 AALejournalIMF009947 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451945973 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Exchange Rate "Fundamentals" versus Speculation : The Case of Lebanon. Washington, D.C. : International Monetary Fund, 1988. 1 online resource (32 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 exchange rate for the Lebanese pound experienced a protracted period of depreciation from end-1982 to November 1987, followed by a marked appreciation over the following six months. This paper investigates the competing hypotheses that the exchange rate over these two periods was driven by a speculative bubble versus 'fundamental' economic variables. Reduced-form and time series models for the exchange rate are estimated and tested for nonstationarity. The results of these test suggest that the pound's volatility in recent years was consistent with an excessive growth in domestic versus foreign currency denominated liquidity rather than speculation. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1988/109 Full text available on IMF http://elibrary.imf.org/view/journals/001/1988/109/001.1988.issue-109-en.xml IMF e-Library