Adrangi, Bahram; Allender, Mary E.; Raffiee, Kambiz - In: Review of Economics & Finance 1 (2011) April, pp. 1-16
This paper investigates the Purchasing Power Parity Theory (PPP) in the context of possible nonlinear relationships between prices and exchange rates of three key currencies. The main contribution of this paper is testing for nonlinearities and nonlinear relationships in a framework of...