Parsley, David C.; Wei, Shang-jin - 2003
-tradables between countries, were thought to be of paramount importance. In this project, we study the movement of real exchange rates … based on the prices of Big Macs (which we show are highly correlated with the CPI based real exchange rates). Our main … real exchange rates), the temporal aggregation bias (argued to be important by Taylor, 2001), or the bias generated by non …