Using panel data for the United States and 22 other OECD countries for the current float, this paper presents evidence that despite substantial short-term perturbations, purchasing power parity actually performed much better than commonly believed. Average rates of growth of real exchange rates...

This paper uses multi-country data for the period 1973-1994 to investigate five key conditions in international finance- purchasing power parity, the Fisher equation, uncovered interest parity, and the equity-return analogues of the latter two. The results are largely consistent with theoretical...

Using random simulations with artificial data with identical sample characteristics to the long-sample exchange rate data employed by Lothian and Taylor(Lothian, J.R. and Taylor, M.P.(1996). The recent float from the perspective of the past two centuries. Journal of Political Economy 104,...