Carrera, Jorge; Restout, Romain - Groupe d'Analyse et de Théorie Économique Lyon … - 2008
This paper investigates the long run behavior of real exchange rates in nineteen countries of Latin America over the period 1970 - 2006. Our data does not support the Purchasing Power Parity (PPP) hypothesis, implying that real shocks tend to have permanent effects on Latin America’s real...