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
Authors:	Arghyrou, Michael G. ; Gregoriou, Andros ; Pourpourides, Panayiotis M.
Publisher:	Cardiff : Cardiff University, Cardiff Business School
Subject:	Wechselkurspolitik \| Wechselkursrisiko \| Internationaler Preiszusammenhang \| Kaufkraftparität \| G-7-Staaten \| purchasing power parity \| exchange rate uncertainty

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Series:	Cardiff Economics Working Papers ; E2009/23
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	613127323 [GVK] hdl:10419/65779 [Handle]
Classification:	F31 - Foreign Exchange ; F41 - Open Economy Macroeconomics
Source:	EconStor

Persistent link: https://www.econbiz.de/10010288807