Purchasing power parity hypothesis is viewed as one of the central doctrines in international economics. The hypothesis states an equilibrium condition equating the nominal exchange rate between two national currencies with the relative price of an identical basket of traded goods in each...

One of the central concerns in Middle East and the North of Africa (MENA) has been the reduction of poverty and inequality so prevalent in the region. Theoretical predictions on the finance-inequality nexus are inconclusive and mixed. Greenwood and Jovanovic (1990) propose an inverted U-shaped...