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Keywords: PPP
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Journal Articles
Journal:
Journal of Economic Studies
Journal of Economic Studies (2022) 49 (6): 937–959.
Published: 10 August 2021
... is more appropriate to capture the behaviour of real exchange rates given the presence of asymmetries both in the long and short run. In particular, the speed of adjustment towards the purchasing power parity (PPP) implied long-run equilibrium is three times faster in a nonlinear framework, which provides...
