When comparing the price of an individual good or service across different countries, it is necessary to use to a … argues that PPP price comparisons address a very narrow set of questions, whose implications for economic behavior and policy …, price comparisons based on PPP conversion are unreliable indictors of consumer demand. If the PPP price of good is lower in …

This paper examines the effect of overall and sector-specific productivity shocks on the real exchange rate in small … open economies. A dynamic stochastic small open economy model shows that productivity shocks impact the real exchange rate … mostly through changes in the relative price of non-traded goods and are unable to explain the large deviations from …