investors to invest more in Indian equity markets. Furthermore, domestic inflation exerts negative and positive significant … essentially determined by exchange rate, domestic inflation, domestic equity market returns, returns and risk associated with US …

This paper examines the long-run validity of purchasing power parity (PPP) for four high-inflation countries. The … test PPP using Johansen's (1988) multivariate cointegration technique. The cointegration tests are conducted with the …, during the recent floating exchange rate period, PPP holds well, at least in a weak form, in high-inflation countries where …

measures of volatility for each country. The cointegration results indicate a significant relationship, negative for four …

multivariate cointegration tests for non-stationary data, the error correction model, and impulse response functions the paper …