Parity reversion in the Asian real exchange rates: new evidence from the local-persistent model

C-Tier
Journal: Applied Economics
Year: 2015
Volume: 47
Issue: 59
Pages: 6395-6408

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article investigates the time-series properties of 13 Asian real exchange rates (RERs) vis-୶is the US dollar. The half-life point estimates drawn from the local-persistent model are all less than 2 years, with a finite upper bound. There is no evidence to indicate that the Asian financial crisis has altered the speed of the purchasing power parity (PPP) adjustments. We find that the persistence of RERs over the last three decades remains unchanged in majority of the cases. Given the fairly rapid speed of adjustments and their corresponding confidence intervals, we conclude that the PPP puzzle does not exist in these countries.

Technical Details

RePEc Handle
repec:taf:applec:v:47:y:2015:i:59:p:6395-6408
Journal Field
General
Author Count
3
Added to Database
2026-01-24