Fanelli, Luca; Bacchiocchi, Emanuele - In: Journal of Applied Econometrics 20 (2005) 6, pp. 749-770
This paper contributes to the empirical literature on the purchasing power parity (PPP) over the post-Bretton Woods period by providing a time-series based interpretation of the controversial evidence characterizing the dynamics of real exchange rates. It is shown that the persistence of...