Bahmani-Oskooee, Mohsen; Tankui, Altin - In: Economics Letters 99 (2008) 1, pp. 40-43
In testing the purchasing power parity theory (PPP) researchers hardly pay attention to the speed with which the exchange rate adjusts to a change in relative prices. In this paper we show that the speed of adjustment is faster when the black market exchange rate is used in testing the PPP as...