Real exchange rate dynamics in the Asian economies: can regime shifts explain purchasing power parity puzzles?
We show that the strong version of the purchasing power parity (PPP) hypothesis holds in most of the US dollar real exchange rates using cointegration method that accounts for breaks in the models. The break dates in seven of the Asian currencies coincide with the two rounds of currency depreciation...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Routledge
2015
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| Online Access: | http://psasir.upm.edu.my/id/eprint/46088/1/Real%20exchange%20rate%20dynamics%20in%20the%20Asian%20economies%20can%20regime%20shifts%20explain%20purchasing%20power%20parity%20puzzles.pdf |