Advanced Search
MyIDEAS: Login

Purchasing power parity and the equilibrium exchange rate

Contents:

Author Info

  • Marek Mičúch
Registered author(s):

    Abstract

    Paper inquires into historical development of key theoretical concepts related to purchasing power parity in 20th century. It presents theories which explain relation between price level, labor productivity and exchange rate. These theories explain the process of how the long-run equilibrium exchange rate is being achieved. On the other hand it elaborates on short-run exchange rate deviations. As the key factor which cause the deviations identified in the paper is presence of the prices of non-tradable goods in price indexes. Proposed is a case study which clarifies the process of equilibrium exchange rate achieving to emphasis some of the theoretical conclusions made in paper. Verification of theoretical conclusions is sketched out through the Big Mac Index statistics. Statistics is to prove proposed relations between price levels and exchange rates in different countries and is to verify the relevance of theoretical conclusions about long-run equilibrium of exchange rates.

    Download Info

    If 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.
    File URL: http://www.vse.cz/polek/download.php?jnl=polek&pdf=691.pdf
    Download Restriction: free of charge, full text delayed 1 year

    File URL: http://www.vse.cz/polek/abstrakt.php?IDcl=691
    Download Restriction: free of charge, full text delayed 1 year

    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 Info

    Article provided by University of Economics, Prague in its journal Politická ekonomie.

    Volume (Year): 2009 (2009)
    Issue (Month): 3 ()
    Pages: 405-428

    as in new window
    Handle: RePEc:prg:jnlpol:v:2009:y:2009:i:3:id:691:p:405-428

    Contact details of provider:
    Postal: nam. W. Churchilla 4, 130 67 Praha 3
    Phone: (02) 24 09 51 11
    Fax: (02) 24 22 06 57
    Web page: http://www.vse.cz/
    More information through EDIRC

    Order Information:
    Postal: Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3
    Email:
    Web: http://www.vse.cz/polek/

    Related research

    Keywords: exchange rate; Balassa-Samuelson effect; purchasing power parity; non-tradable good; short-run deviations; labor productivity; Big Mac Index;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:prg:jnlpol:v:2009:y:2009:i:3:id:691:p:405-428. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vaclav Subrta).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.