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 …

This paper reviews the literature on exchange rate economics over the last two decades,
with particular reference to recent developments. Exchange rate economics has been one of …

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 …

The second edition of this widely acclaimed text presents a thoroughly up-to-date intuitive
account of recent developments in econometrics. It continues to present the frontiers of …

Originally propounded by the sixteenth-century scholars of the University of Salamanca, the
concept of purchasing power parity (PPP) was revived in the interwar period in the context of …

Since standard tests for mean reversion in real exchange rates may lack power with data
spanning the recent float, researchers have employed more powerful multivariate tests …

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 …

We fit nonlinearly mean‐reverting models to real dollar exchange rates over the post‐
Bretton Woods period, consistent with a theoretical literature on transactions costs in …

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 …

Using annual data spanning two centuries for dollar-sterling and franc-sterling real
exchange rates, we find strong evidence of mean-reverting real exchange rate behavior …