Li, M. Y. L. (2005) Purchasing power parity under high and low volatility regimes, Applied Economics Letters, 14, 581-9.Li, M.-Y.L. (2007) Purchasing power parity under high and low volatility regimes. Applied Economics Letters 14: 581-589....
In comparing the deviations of the exchange rates from their purchasing power parity levels in the two cases it turns out that both the average size of the divergencies and their duration are smaller under the fixed rate period 1957–1966 than under the recent period of floating rates. The ...
Using reduced rank cointegration analysis, this study examines whether exchange rate realignments are effective in extenuating the deviations from purchasing power parity (PPP) under the European Monetary System (EMS). In contrast to previous studies, more positive evidence for the PPP hypothesis is fo...
Evidence is also found which indicates a bias in purchasing power parity calculations using consumer price indexes, and the hypothesis that purchasing power parity relationships shifted as a result of changes in relative prices occuring at the end of 1973 cannot be rejected. The findings are related...
Purchasing Power Parity (PPP) refers to the theory which tries to states the equilibrium rate of the currency of two nations when the purchasing power...Become a member and unlock all Study Answers Try it risk-free for 30 days Try it risk-free Ask a question Our experts can answ...
Purchasing power parity (PPP) is one of the most extensively analyzed relationships in the international finance literature (see, e.g., the recent survey studies by Breuer, 1994; Froot and Rogoff, 1995; and Rogoff, 1996). In its relative version it states that changes in nominal exchange rat...
Purchasing power parity, or the law of one price, is one of the most popularly tested theories in economics. In fact, tests for PPP have evolved along with time series analysis as much advancement in time series techniques have been applied in attempts to ...
There are two common reference exchange rates often considered. The person might mean the exchange rate is overvalued with respect to purchasing power parity (PPP), or it he may mean the exchange rate is overvalued relative to the rate presumed needed to balance the current account. ...
aAs Frankel stresses, since ex ante purchasing power parity may not hold even for periods as long as a decade, the existence of perfect capital markets (in the sense that the interest differential between two countries is equal to the expected change in the nominal exchange rate) does not imp...
aunder the first scenario, per-capital incomes rise sixfold in purchasing power parity terms and vault 3 billion additional asians to affluence on a par with europe and north america. asia's combined GDP reaches a mighty $us4 trillion by 2050, or 52 per cent of the projected global total...