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A Note on Exchange Rates, Purchasing Power Parities and Translation Procedures

✍ Scribed by F. L. CLARKE


Book ID
110935925
Publisher
John Wiley and Sons
Year
1977
Tongue
English
Weight
478 KB
Volume
13
Category
Article
ISSN
0001-3072

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International real interest rate differe
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## Abstract According to one strand of the international finance literature, market efficiency implies that the real exchange rate follows a martingale process, in direct conflict with the long‐run absolute purchasing power parity hypothesis, which requires a stationary real exchange rate process.