The problems of exchange rate misalignments and the resulting payments imbalances have
plagued the world economy for decades. At the Louvre Accord of 1987, the Group of Five …

Substantial fluctuations in real exchange rates, ie, deviations from purchasing power parity
(PPP), which closely mirror movements in nominal rates, have been one of the most notable …

In testing the purchasing power parity theory (PPP) researchers hardly pay attention to the
speed with which the exchange rate adjusts to a change in relative prices. In this paper we …

It has been long recognized that a situation in which the purchasing power parity (PPP)
calculations may prove insightful is when large movements in the domestic general price …

In this note we employ the KPSS test in addition to the ADF test to determine whether the
real effective exchange rates in Middle Eastern countries follow a random walk process or …

We find weak evidence of a stable relationship between the Australian real exchange rate
and the terms of trade from 1969 to 1990. Since the float, the terms of trade and long real …

This paper presents empirical tests for stationarity of fiscal deficits for three Latin America
countries. It also examines the causality patterns between government expenditures and …

In this paper we compare ways of computing stationarity tests. We show that whereas some
of the procedures recommended lead to inconsistency of the tests, it is still possible to …

The objective of this paper is to investigate the persistence in Turkish real exchange rates
(RER) using unit root tests and autoregressive fractionally integrated moving average …

The International Monetary Fund constructs and publishes the real and nominal effective
exchange rates, mostly for developed but not less developed countries. This paper employs …