Ahmad, Yamin; Craighead, William D. - In: Journal of International Money and Finance 30 (2011) 5, pp. 817-830
This paper uses a unique new monthly US-UK real exchange rate series for the January 1794-December 2009 period to reexamine the academic debate over purchasing power parity (PPP). The consensus view described by Rogoff (1996) is that PPP holds in the long-run, but short-run deviations are very...