Estimating Yen/Dollar and Mark/Dollar Purchasing Power Parities
AbstractA new technique for estimating purchasing power parity (PPP) exchange rates that makes use of price pressure exerted by exchange rate deviation is presented. The methodology consists of two equations for relative prices and relative costs, which are derived from a structural model, and offers a more satisfactory solution to the "base-year" problem than existing methods. The yen/dollar and mark/dollar PPP exchange rates are estimated and compared with those derived from other approaches. The closeness of these estimates shows that PPP estimation, although not a trivial exercise, can be performed with scientific accuracy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Palgrave Macmillan in its journal Staff Papers - International Monetary Fund.
Volume (Year): 37 (1990)
Issue (Month): 3 (September)
Contact details of provider:
Web page: http://www.palgrave-journals.com/
Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Zhibai, Zhang, 2012. "A Simple Model and Its Application in the Valuation of Five Asian Real Exchange Rates," MPRA Paper 40953, University Library of Munich, Germany.
- Chou, W. L. & Shih, Y. C., 1998. "The Equilibrium Exchange Rate of the Chinese Renminbi," Journal of Comparative Economics, Elsevier, vol. 26(1), pages 165-174, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Gale).
If references are entirely missing, you can add them using this form.