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For the small open economy of Botswana the PPP theory is validated in both the absolute and relative version for the … of the Pula in the long run. This contradicts the portfolio balance theory which advocates that for a trade account …
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Credible Granger-causality analysis appears to require post-sample inference, as it is well-known that in-sample fit can be a poor guide to actual forecasting effectiveness. However, post-sample model testing requires an often-consequential a priori partitioning of the data into an "in-sample"...
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