The exchange rate and long-run price movements in the US and Japan

Zhenhui Xu ()

Applied Economics Letters, 1999, vol. 6, issue 4, 227-230

Abstract: The close economic relationship between the US and Japan raises an interesting question about the effect of price movements in the US and Japan on the bilateral exchange rate. This paper investigates the long-run purchasing power parity between the US dollar and the Japanese yen. While earlier empirical studies often rejected the PPP hypothesis for the US and Japan, our results show that allowing measurement errors in price indices, the long-run PPP between the two countries is supported based on both the Engle-Granger and the Johansen cointegration tests.

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:6:y:1999:i:4:p:227-230

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/135048599353393

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().