Exchange rate uncertainty and deviations from Purchasing Power Parity: Evidence from the G7 area

Arghyrou, Gregoriou and Pourpourides (2009) argue that exchange rate uncertainty causes deviations from the law of one price. We test this hypothesis on aggregate data from the G7-area. We find that exchange rate uncertainty explains to a significant degree deviations from Purchasing Power Parity.

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Year of publication:	2009-11
Authors:	Arghyrou, Michael ; gregoriou, andros ; Pourpourides, Panayiotis M.
Institutions:	Economics Section, Cardiff Business School
Subject:	Purchasing power parity \| exchange rate uncertainty

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Extent:	application/pdf
Series:	Cardiff Economics Working Papers. - ISSN 1749-6101.
Type of publication:	Book / Working Paper
Notes:	Number E2009/23 14 pages
Classification:	F31 - Foreign Exchange ; F41 - Open Economy Macroeconomics
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008567857