Frydman, Roman; Goldberg, Michael D.; Johansen, Søren; … - Økonomisk Institut, Københavns Universitet - 2008
features of the data, including the long-swings behavior of
exchange rates.
Keywords: PPP puzzle, Long Swings, Imperfect … two
empirical regularities in the context of one model is referred to as the �PPP puzzle.�
Fi gur e 1
D M / $ Exch ange R … Financial Statistics.
In this paper, we trace the PPP puzzle to exchange rate modelers�use of the
�Rational Expectations …