While the majority of studies on purchasing power parity (PPP) and exchange rate forecasting focus on bilateral exchange rates, the purpose of this article is to analyse the aggregate nominal effective exchange rate index of six major currencies. Export and import price indexes are used to...

This study examines the relationship between returns on portfolios, comprised of stocks of various size and book values, and changes in inflation. The relationship is evaluated in the context of positive and negative changes in expected and unexpected inflation, and expansionary and...