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On sluggish output adjustment and exchange rate dynamics

โœ Scribed by Jay H. Levin


Book ID
116116594
Publisher
Elsevier Science
Year
1994
Tongue
English
Weight
697 KB
Volume
13
Category
Article
ISSN
0261-5606

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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