Chand, Satish2010-11-012011-04-192010-11-012011-04-19Chand. S. (2001). How misaligned is the Australian real exchange rate?. International and Development Economics Paper 01-2. Canberra, ACT: Crawford School of Economics and Government, The Australian National University.http://hdl.handle.net/10440/1236This paper uses quarterly data from September 1981 to December 2000 to quantify the extent to which the Australian real exchange rate is misaligned relative to its long-run equilibrium value. Our modelling suggest, that as of December 2000, the real exchange rate was seven percent below its equilibrium value; this figure is modest in comparison to purchasing power parity indicators that suggest considerably greater misalignment. Furthermore, once short-run dynamics are accounted for, even this anomaly disappears.32 pagesapplication/pdfen-AUAuthor/s retain copyrightexchange ratesAustraliamisalignments2001-08-07