search query: @author Macdonald, R. / total: 26
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| Author: | Bayoumi, T. MacDonald, R. |
| Title: | Deviations of exchange rates from purchasing power parity: a story featuring two monetary unions |
| Journal: | Staff Papers
1999 : MAR, VOL. 46:1, p. 89-102 |
| Index terms: | PURCHASING POWER PARITY EXCHANGE RATES MONETARY POLICY |
| Language: | eng |
| Abstract: | The authors examine the mean-reverting properties of real exchange rates, by comparing the unit root properties of a group of international real exchange rates with two groups of international real exchange rates. Strikingly, they find that while the international real exchange rates taken as a group appear mean reverting, the international rates are not. This is consistent with the view that while nominal shocks may be mean reverting over the medium term, underlying real factors do generate long-term trends in real exchange rates. |
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