Parity Reversion in Real Exchange Rates: Fast, Slow, or Not at All?
Paul Cashin () and
Christopher McDermott ()
IMF Staff Papers, 2006, vol. 53, issue 1, 5
This paper tests for purchasing power parity (PPP) using real effective exchange rate data for 90 developed and developing countries in the post-Bretton Woods period. Support for PPP is found, since the majority of countries experience finite deviations of real exchange rates from parity. The speed of parity reversion is found to be typically much faster for developed countries than for developing countries and to be considerably faster for countries with flexible nominal exchange rate regimes compared with countries having fixed nominal exchange rate regimes. Copyright 2006, International Monetary Fund
JEL-codes: C22 F31 F41 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed
Downloads: (external link)
http://www.imf.org/External/Pubs/FT/staffp/2006/01/pdf/cashin.pdf main text (application/pdf)
Access to full text is restricted to subscribers.
Working Paper: Parity Reversion in Real Exchange Rates; Fast, Slow or Not At All? (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:imfstp:v:53:y:2006:i:1:p:5
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2
Access Statistics for this article
More articles in IMF Staff Papers from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla ().