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Purchasing Power Parity Revisited

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  • Simón Sosvilla-Rivero
  • Emma García

Abstract

This paper presents a selective survey on some recent empirical attempts to test the validity of Purchasing Power Parity (PPP) to explain exchange-rate movements in the main currencies, as well as the econometric methodology used in such tests. Finally, we offer some encouraging results regarding the forecastability of exchange rate using PPP.

Suggested Citation

  • Simón Sosvilla-Rivero & Emma García, "undated". "Purchasing Power Parity Revisited," Working Papers 2003-20, FEDEA.
    • Handle: RePEc:fda:fdaddt:2003-20
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