Chowdhry, Bhagwan; Roll, Richard; Xia, Yihong - In: American Economic Review 95 (2005) 1, pp. 255-276
Relative purchasing power parity (PPP) holds for pure price inflations, which affect prices of all goods and services by the same proportion, while leaving relative prices unchanged. Pure price inflations also affect nominal returns of all traded financial assets by exactly the same amount....
