Pelagatti, Matteo; Colombo, Emilio - Dipartimento di Economia, Metodi Quantitativi e … - 2012
The empirical validation of the purchasing power parity (PPP) theory is generally based on real exchange rates built using consumer price indexes (CPI). The empirical evidence does not generally support the theory and this fact goes under the name of purchasing power parity puzzle. In this paper...