IDEAS home Printed from https://ideas.repec.org/a/wly/jmoncb/v58y2026i2p449-469.html

Exchange Rates and Prices in the Netherlands and Britain over the Past Four Centuries

Author

Listed:
  • JAMES R. LOTHIAN
  • JOHN DEVEREUX

Abstract

The paper studies the long‐term stability of the purchasing‐power‐parity (PPP) relation using data for the Netherlands and Great Britain (earlier the Dutch Republic and England) from 1590 until 2020. We begin by investigating the behavior of the real exchange rate in rate‐of‐growth form finding strong evidence supporting long‐run relative PPP. Turning to price levels, we find evidence of mean‐reverting behavior over the whole period with one long‐lived shift in mean between 1788 and 1931. The myriad other factors that varied over this long period that might have affected the stability of the PPP relation do not appear to have mattered.

Suggested Citation

  • James R. Lothian & John Devereux, 2026. "Exchange Rates and Prices in the Netherlands and Britain over the Past Four Centuries," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 58(2), pages 449-469, March.
    • Handle: RePEc:wly:jmoncb:v:58:y:2026:i:2:p:449-469
    DOI: 10.1111/jmcb.13213
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jmcb.13213
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jmcb.13213?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jmoncb:v:58:y:2026:i:2:p:449-469. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.