Cuestas, Juan Carlos; Regis, Paulo José - In: Economics Bulletin 3 (2008) 27, pp. 1-8
This paper tests for the empirical fulfilment of PPP in Australia (1977-2004). Previous research focuses on the presence of structural breaks and fails to find any support for PPP (Darne and Hoarau, 2008, Henry and Olekalns, 2002). In contrast, we find that the real exchange rate is stationary...
