This paper examines whether deviations from PPP are stationary in the presence of nonlinearity, and whether the adjustment towards PPP is symmetric from above and below. Using alternative nonlinear models, our results support mean reversion and asymmetric adjustment dynamics. We find differences in
Nonlinearities and Real Exchange Rate Dynamics
✍ Scribed by Jean Imbs; Haroon Mumtaz; Morten O. Ravn; Hélène Rey
- Book ID
- 114996330
- Publisher
- MIT Press
- Year
- 2003
- Tongue
- English
- Weight
- 92 KB
- Volume
- 1
- Category
- Article
- ISSN
- 1542-4766
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