Deviations of Exchange Rates from Purchasing Power Parity : A Story Featuring Two Monetary Unions /

We examine the mean-reverting properties of real exchange rates, by comparing the unit root properties of a group of international real exchange rates with two groups of intra-national real exchange rates. Strikingly, we find that while the international real rates taken as a group appear mean-rever...

Täydet tiedot

Bibliografiset tiedot
Päätekijä: MacDonald, Ronald
Muut tekijät: Bayoumi, Tamim
Aineistotyyppi: Aikakauslehti
Kieli:English
Julkaistu: Washington, D.C. : International Monetary Fund, 1998.
Sarja:IMF Working Papers; Working Paper ; No. 1998/069
Linkit:Full text available on IMF
Kuvaus
Yhteenveto:We examine the mean-reverting properties of real exchange rates, by comparing the unit root properties of a group of international real exchange rates with two groups of intra-national real exchange rates. Strikingly, we find that while the international real rates taken as a group appear mean-reverting, the intra-national rates are not. This is consistent with the view that while monetary shocks may be mean-reverting over the medium term, underlying real factors do generate long-term trends in real exchange rates.
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Ulkoasu:1 online resource (17 pages)
Aineistotyyppi:Mode of access: Internet
ISSN:1018-5941
Pääsy:Electronic access restricted to authorized BRAC University faculty, staff and students