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PURCHASING POWER PARITY VERSUS FIXED EXCHANGE RATE RULES: A STABILITY AND WELFARE ANALYSIS

✍ Scribed by JONG KOOK SHIN; CHETAN SUBRAMANIAN


Book ID
118713268
Publisher
John Wiley and Sons
Year
2011
Tongue
English
Weight
800 KB
Volume
80
Category
Article
ISSN
1463-6786

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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.