The Purchasing Power Parity Hypothesis

Imad A. Moosa and Razzaque H. Bhatti
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Imad A. Moosa: La Trobe University
Razzaque H. Bhatti: University of Azad Jammu and Kashmir

Chapter 2 in International Parity Conditions, 1997, pp 25-52 from Palgrave Macmillan

Abstract: Abstract The purchasing power parity (PPP) hypothesis, which postulates a relationship between exchange rates and prices, is one of the most thoroughly examined topics in international finance and in economics at large. Yet it remains a highly controversial topic, both from the theoretical and empirical perspective.

Keywords: Exchange Rate; Real Exchange Rate; Purchase Power Parity; Nominal Exchange Rate; Equilibrium Exchange Rate (search for similar items in EconPapers)
Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-25523-8_2

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DOI: 10.1007/978-1-349-25523-8_2

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