Purchasing Power Parity Across States and Goods Within Australia

On the reliability of Japanese inflation expectations using purchasing power parity

This paper shows how purchasing power parity (PPP) can be used to construct a measure for inflation expectations and discusses the properties of this measure from both a theoretical and an empirical perspective. Under the PPP hypothesis, inflation expectations in one country are equal to inflation expectations in another country plus the expected depreciation rate of the nominal exchange rate. ...

Nonlinear Adjustment Towards Purchasing Power Parity

Some Evidence of Purchasing Power Parity

Empirical support for purchasing power parity is mixed with results dependent on the time frame and countries under examination, the methodology employed, attempts to control for aggregation bias in the data, and whether adjustments are made to account for productivity differences across nations. As a central component of macroeconomic thinking, purchasing power parity is battered and battle-wo...

Purchasing Power Parity Hypothesis In OIC Countries: Evidence From Panel Unit Root Tests With Heterogeneous Structural Breaks

Is there any economic integration among China and her Western partners?

In this paper, we test the real interest parity, uncovered interest parity, and purchasing power parity (PPP) for China against the US, European Union, the UK, and Japan. The real interest parity is an aggregate measure of economic integration, which can be decomposed into the integration of two major markets: the financial market and the goods market. The integration of each market can be furt...