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Volume 18, Issue 1
1 February 1997
Studies in Economics and Finance Cover Image for Volume 18, Issue 1
Review Article| February 01 1997

ARE THE CPI AND WPI APPROPRIATE MEASURES TO USE FOR TESTING THE PPP HYPOTHESIS?

Marilyn Miller Dutton
Marilyn Miller Dutton
Assistant Professor, School of Business, North Carolina Central University, Durham, NC 27707
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Author & Article Information
Publisher: Emerald Publishing
Online ISSN: 1755-6791
Print ISSN: 1086-7376
© MCB UP Limited
1997
Studies in Economics and Finance (1997) 18 (1): 62–99.
https://doi.org/10.1108/eb028736

This paper evaluates the commonly used CPI and WPI proxies for the real exchange rate by comparing them to new measures constructed from a different data series of traded and nontraded goods prices. The tests provide mixed evidence in favor of using the general price indexes to construct measures of the real exchange rate.

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© MCB UP Limited
1997
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