The relationship between inflation and the relative variability of prices has been the subject ofcareful investigation in the US using data for product groups at the city level. Yet in Europe,where the relationship could have profound effects on the viability of monetary integration, noattempt...

We test for mean reversion in real exchange rates using data from five countries, four of whichhave experienced episodes of high inflation. We use monthly data for Argentina, Brazil, Chile,Colombia and Israel from 1972 to 1993 and find that in all cases except Brazil a stochastic unitroot model...