Shadow Exchange Rates for Project Economic Analysis: Toward Improving Practice at the Asian Development Bank
Lagman-Martin, Anneli | February 2004
Abstract
This note examines the Asian Development Bank’s (ADB) practice in estimating and using shadow exchange rate in the economic analysis of projects. Recognizing the limited application of the method suggested in ADB’s Guidelines for the Economic Analysis of Projects, this note suggests a simple trade-weighted approach that corrects for at least the minimum level of distortions in the economic price of foreign exchange. This paper also echoes the recommendation of ADB’s Economic Analysis in 2002: A Retrospective for the periodic reassessment of the shadow exchange rate as part of country strategy and program formulation.
Citation
Lagman-Martin, Anneli. 2004. Shadow Exchange Rates for Project Economic Analysis: Toward Improving Practice at the Asian Development Bank. © Asian Development Bank. http://hdl.handle.net/11540/1790. License: CC BY 3.0 IGO.ISSN
1655-5236
Keywords
Macroeconomic
Macroeconomic Analysis
Macroeconomic Framework
Macroeconomic Models
Macroeconomic Performance
Macroeconomic Planning
Macroeconomic Policies
Macroeconomic Reform
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Citable URI
http://hdl.handle.net/11540/1790Metadata
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