Taylor, Mark P.

Long-Run Purchasing Power Parity and the Dollar-Sterling Exchange Rate in the 1920's Mark P Taylor. [electronic resource] / Mark P Taylor. - Washington, D.C. : International Monetary Fund, 1990. - 1 online resource (25 p.) - IMF Working Papers; Working Paper ; No. 90/118 . - IMF Working Papers; Working Paper ; No. 90/118 .

This paper replies to Ahking's (1990) re-examination of Taylor and McMahon's (1988) analysis of long-run purchasing power parity in the 1920s. We demonstrate that Ahking's conclusions are only partially correct and reestablish our conclusion that, a form of long-run purchasing-power parity did in fact hold for dollar-sterling during this period. The new results are also employed to gauge the degree of overvaluation of sterling relative to the imposed prewar parity of

1451940564 : 15.00 USD

1018-5941

10.5089/9781451940565.001 doi


Cointegration
Econometric Analysis
Linear Trend
Time Series


United Kingdom

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