Kazaks, Martin; Qin, Duo - School of Economics and Finance, Queen Mary - 2002
This paper investigates the short-run dynamic impact of foreign currency shocks on the deviations of Latvian <i>lats</i> vis-à-vis US <i>dollar</i> market spot rate from the parity set via <i>lats'</i> peg to SDR for the period from 1994 to 2000. The analysis is based on the standard theoretical model of dynamic...