Purchasing power parity under the European Monetary System
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Detail(s)
Original language | English |
---|---|
Pages (from-to) | 179-189 |
Journal / Publication | Journal of International Money and Finance |
Volume | 14 |
Issue number | 2 |
Publication status | Published - Apr 1995 |
Link(s)
Abstract
Using reduced rank cointegration analysis, this study examines whether exchange rate realignments are effective in extenuating the deviations from purchasing power parity (PPP) under the European Monetary System (EMS). In contrast to previous studies, more positive evidence for the PPP hypothesis is found. The difference in findings can be attributed partly to the statistical technique used, the correction of the finite sample bias, and the adjustment for realignment effects. In general, the results of this study support that currency realignments of the EMS have been effective in maintaining PPP among its member countries. © 1995.
Citation Format(s)
Purchasing power parity under the European Monetary System. / Cheung, Yin-Wong; Fung, Hung-Gay; Kon S. Lai, S. Lai et al.
In: Journal of International Money and Finance, Vol. 14, No. 2, 04.1995, p. 179-189.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review