Exchange Rate Volatility and Purchasing Power Parity: Does Euro Make Any Difference?
This paper provides a new test of the purchasing power parity (PPP) and its relevance for the Euro. Principal component analysis (PCA) is employed to construct a pooled measure of inflation for 12 Euro-currency countries. This measure is used to test the PPP for Euro against three major currencies,...
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| Format: | Article |
| Language: | English |
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Universiti Utara Malaysia
2010
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| Online Access: | https://repo.uum.edu.my/id/eprint/25062/1/IJBF%207%201%202010%2099%20118.pdf |