Download This Paper Open PDF in Browser

Purchasing Power Parity Revisited

50 Pages Posted: 8 Jan 2004  

Simon Sosvilla-Rivero

Complutense Institute for International Studies

Emma Garcia

Foundation for Applied Economic Research (FEDEA)

Date Written: December 2003

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.

Keywords: Exchange rates, Purchasing Power parity, Cointegration

JEL Classification: F31, C32, C33

Suggested Citation

Sosvilla-Rivero, Simon and Garcia, Emma, Purchasing Power Parity Revisited (December 2003). Available at SSRN: https://ssrn.com/abstract=477446 or http://dx.doi.org/10.2139/ssrn.477446

Simon Sosvilla-Rivero (Contact Author)

Complutense Institute for International Studies ( email )

Carretera de Humera s/n
Madrid, Madrid 28223
Spain
+34913932626 (Phone)

HOME PAGE: http://www.ucm.es/info/ecocuan/ssr/

Emma Garcia

Foundation for Applied Economic Research (FEDEA) ( email )

Jorge Juan 46
Madrid, 28001
Spain

Paper statistics

Downloads
476
rank
50,869
Abstract Views
2,287
PlumX