The purchasing power parity fallacy: time to reconsider the PPP hypothesis

DOI10.1007/S11079-017-9473-9MaRDI QIDQ2416319zbMATH OpenOpenAlexFDO

Authors Maria Eleftheriou, Nikolas A. Müller-Plantenberg

Publication date 23 May 2019

Published in Open Economies Review (Search for Journal in Brave)

Full work available at URL http://hdl.handle.net/10486/690621

zbMATH Keywords

currency market pressuregood market arbitragepurchasing power parity fallacyreal exchange rate accounting

Mathematics Subject Classification ID

Macroeconomic theory (monetary models, models of taxation) (91B64)

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Cites work

• International liquidity and exchange rate dynamics
• Nonlinear mean reversion in real exchange rates.
• Real exchange rate forecasting and PPP: this time the random walk loses
• Real exchange rates and fundamentals: Evidence from 15 OECD countries
• Should the law of one price be pushed away? Evidence from international commodity markets
• Threshold Adjustment of Deviations from the Law of One Price
• Threshold cointegration and nonlinear adjustment to the law of one price

Cited in

(4)

• Purchasing Power Parity with Strategic Markets
• The present-value model of the exchange rate with a persistently time-varying risk premium: evidence from the dollar-yen rate
• Inter-temporal purchasing power parity
• Government purchases and the real exchange rate

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