Kim, Hyeongwoo - In: Journal of Macroeconomics 34 (2012) 1, pp. 223-238
Cheung et al. (2004) use a vector error correction model (VECM) for the current float nominal exchange rate and relative price data and claim that the sluggish purchasing power parity (PPP) reversion is primarily driven by the nominal exchange rate, not by relative price adjustment, which is at...