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Publication Type
Journal Article
UWI Author(s)
Author, Analytic
Francis, Alfred A.
Author Affiliation, Ana.
Department of Economics
Article Title
Is the Jamaican dollar overvalued ?
Medium Designator
n/a
Connective Phrase
n/a
Journal Title
Social and economic studies
Translated Title
n/a
Reprint Status
Refereed
Date of Publication
1998
Volume ID
47
Issue ID
4
Page(s)
29-45
Language
n/a
Connective Phrase
n/a
Location/URL
n/a
ISSN
n/a
Notes
n/a
Abstract
Questions whether or not the Jamaican dollar is overvalued. Adopts two objective tests in discussing the issue. Reports on regression analyses performed on the relationship between the balance of payments on current accounts and the exchange rate in seeking to find out whether or not depreciation of the currency improves the balance of payments on the current account. The results of the analysis support the notion that depreciation improves the balance of payments. A second approach to the issue involves the derivation of an implicit exchange rate as the ratio of the GNP in nominal Jamaican dollars to the purchasing power parity estimate of the GNP at international US dollar prices. This statistical approach suggests that the nominal exchange rate (1995) understates the real value of the Jamaican dollar.....
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