Abstract
We introduce and summarize the results of 18 empirical studies that make up this special issue on long-run purchasing power parity (PPP) and real exchange rates. The motivation for the special issue was to bring together a set of studies as diverse as possible in terms of countries, real exchange rates and methodology, as a means of testing the robustness of long-run PPP. Overall, the results of the various studies provide robust support for long-run PPP.
Notes
2The importance of using long spans of data in order to enhance test power in testing for long-run PPP is stressed by Lothian and Taylor (Citation1996, Citation2000, Citation2008).
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