Publisher Summary This chapter presents an overview of the long-run determinants of
purchasing power parity (PPP). It reviews the huge time series literature testing simple PPP …

FIRST ARTICULATED by scholars of the ISalamanca school in sixteenth century Spain, 1
purchasing power parity (PPP) is the disarmingly simple empirical proposition that, once …

Recent panel studies of purchasing power parity have reported strong evidence of mean-
reversion in real exchange rates. However, these studies fail to control for cross-sectional …

The real exchange rate between two countries may be defined as the relative price of one
country's consumption basket in terms of the consumption basket of the other country.' This …

First published in 2007. Exchange Rate Economics: Theories and Evidence is the second
edition of Floating Exchange Rates: Theories and Evidence, and builds on the successful …

This paper re‐examines the evidence on Purchasing Power Parity (PPP) in the long run.
Previous studies have generally been unable to reject the hypothesis that the real exchange …

We assess the progress made by the profession in understanding real exchange rate
behavior through a selective and critical, but nonetheless expository, review of the literature …

This book describes and evaluates the literature on exchange rate economics. It provides a
wide-ranging survey, with background on the history of international monetary regimes and …

Publisher Summary This chapter reviews the international aspects of monetary policy and
presents the classical model of the open economy. The operation of the gold standard, the …

The fifth edition of Maurice D. Levi's classic textbook has been updated to incorporate the
massive changes in the world of international finance of the past few years. In particular, the …