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Presumably driven by the disbelief that such an intuitively appealing proposition about exchange rate behavior had found little support in the data, researchers have embarked in a "search" for PPP using increasingly sophisticated time series methods. The early 1990s have seen a proliferation of studies testing for PPP over the long-run either by testing whether nominal exchange rates and relative prices move together (co integrate) or by testing whether the real exchange rate has a tendency to revert to a stable equilibrium level over time (is stationary).
In economics, purchasing power parity (PPP) is a theory which says that the long-run equilibrium exchange rate of two currencies is the rate that equalizes the currencies' purchasing power...
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Common topics in this essay:
- Citigroup: Taking Sides Cases Analysis
- Citigroup In Post - WTO China
- Citigroup's Adaptability in China Market Expansion
- Products, Services And Prices In The Free Market Economy
- Products, Services, and Prices in the Free Market Economy
- Products, Services, and Prices in the Free Market Economy
- Products, Services, and Prices in the Free Market Economy
- Running head: Citigroup in Post-WTO China Analysis
- Taking Sides Citigroup in Post-WTO China
- Taking Sides Citigroup
- Who Determines The Prices Of Goods In Market? Government Or Free Forces Of Market
- PRODUCTS, SERVICES, AND PRICES IN THE FREE MARKET ECONOMY
- Products, Services, And Prices In The Free Market Economy
- products,services, and prices in the free market economy
- taking sides-citigroup
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