Tsurumi, Hiroki; L. Chen, Chyong - In: Journal of Economic Integration 13 (1998), pp. 232-254
From July 1978 to April 1989 Taiwan adopted a snake system by allowing the foreign exchange rate to fluctuate within a narrow band of the centered rate. Using monthly data on the Taiwan dollar/U.S. dollar exchange rate, we show that inference on the purchasing power parity hypothesis is...