Download or read book Purchasing Power Parity Before and After the Adoption of the Euro written by Su Zhou and published by . This book was released on 2008 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the purchasing power parity (PPP) hypothesis for the post-Bretton Woods era including the period after the introduction of the euro. The study applies a new nonlinear unit root test to the bilateral real exchange rates of both European and other industrial countries with the French franc and German mark (and the euro after 1998), as well as the US dollar as numeraire currencies. The results of the study provide stronger support for PPP than any earlier studies of bilateral PPP for industrial countries and suggest that (1) PPP tends to hold well within the European Union (EU) even before the adoption of the euro, (2) the evidence for PPP becomes more significant for both EU and non-EU countries when the sample period is extended to the euro era, and (3) convergence toward PPP between the EU countries, especially between the euro-area countries, tends to be nonlinear, while it is likely to be linear for the non-EU industrial countries.
Download or read book Convergence to Purchasing Power Parity at the Commencement of the Euro written by Claude Lopez and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate convergence towards purchasing power parity (PPP) within the eurozone and between the eurozone and its main partners using panel data methods. We find strong rejections of the unit-root hypothesis, and therefore evidence of PPP, in the eurozone for different numeraire currencies, as well as in the eurozone plus the United States with the dollar as the numeraire currency, starting between 1996 and 1999. The process of convergence towards PPP, however, begins earlier, following the currency crises of 1992 and 1993, adoption of the Maastricht Treaty, and official completion of the Single Market.
Download or read book Investigating Purchasing Power Parity in Central and Eastern European Countries written by Darja Borsic and published by . This book was released on 2013 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: The goal of this paper is to investigate the validity of PPP for a heterogeneous group of 12 transition countries with respect to dollar and euro. The analysis relies on monthly data frequency covering the period of 1994-2008. The first generation of panel unit root tests is based on the cross-sectional independency hypothesis. This paper applies five first generation unit root tests. The cross-sectional independency hypothesis is rather restrictive and somewhat unrealistic in the majority of macroeconomic applications of unit root tests. Thus, the second generation of panel unit root tests is characterized by the rejection of the cross-sectional independence hypothesis. Within this second generation of tests, two main approaches are distinguished. The first one relies on the factor structure approach. The second approach consists of imposing few or none restrictions on the residuals covariance matrix and has been adopted the use of nonlinear instrumental variables methods or the use of bootstrap approaches to solve the nuisance parameter problem due to cross-sectional dependency. We employ several second generation panel unit root tests in this paper to scrutinize the validity of PPP theory.
Download or read book Price Impacts of Non Adoption of the Euro for Small European Countries written by Sibel Yelten and published by International Monetary Fund. This book was released on 2006-06 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Debates surrounding the adoption of a common currency have focused on its benefits weighed against the long-term costs of losing monetary independence. These debates have assumed that the penalty for not adopting a common currency is the maintenance of the status quo. This paper uses the Sjaastad model to analyze the price-making power of major currencies with regard to the prices of traded goods in small countries that have not adopted the euro and uses the Bayoumi-Eichengreen OCA index methodology to shed further light on changes in Europe. The empirical evidence suggests that small countries that have not adopted the euro have increasingly seen a change in the determinants of their traded goods prices. This seems to contrast with the experience of small countries that adopted the euro. The results need to be interpreted carefully, given the short time series.
Download or read book Eurostat OECD Methodological Manual on Purchasing Power Parities 2012 Edition written by OECD and published by OECD Publishing. This book was released on 2012-11-30 with total page 448 pages. Available in PDF, EPUB and Kindle. Book excerpt: This manual gives a complete, detailed and up-to-date description of the Eurostat-OECD PPP Programme, including its organisation, the various surveys carried out by participating countries and the ways PPPs are calculated and disseminated. It also provides guidance on the use of PPPs.
Download or read book Purchasing Power Parity and Exchange Rates written by Lawrence H. Officer and published by Greenwich, Conn. : JAI Press. This book was released on 1982 with total page 394 pages. Available in PDF, EPUB and Kindle. Book excerpt: Evolution of PPP theory; Modern PPP theory and practice; Selected PPP studies.
Download or read book Purchasing Power Parity and the Euro Area written by Kees C. G. Koedijk and published by . This book was released on 2011 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes purchasing power parity (PPP) for the euro area. We study the impact of the introduction of the euro in 1999 on the behavior of real exchange rates. We test the PPP hypothesis for a panel of real exchange rates within the euro area over the period 1973-2003. Our methodology exploits the cross-sectional dependence across real exchange rates and allows for heterogeneity in the rates of mean reversion. We present evidence in favor of PPP for the full panel of real exchange rates, but we show that accounting for cross-country differences within the euro area is essential. The unit root hypothesis can be rejected for some real exchange rates, but evidence for PPP is weak for others. We also investigate PPP between the ldquo;syntheticrdquo; euro against several other major currencies over the period 1979-2003. We find support for the PPP hypothesis for the full panel of real exchange rates. When the restriction of a common mean reversion coefficient is relaxed, we reject the unit root hypothesis for the euro-Swiss franc rate only. We conclude that the process of economic integration in Europe has accelerated convergence toward PPP within the euro area.
Download or read book The Economics of Foreign Exchange and Global Finance written by Peijie Wang and published by Springer Nature. This book was released on 2020-08-28 with total page 492 pages. Available in PDF, EPUB and Kindle. Book excerpt: This textbook presents all major topics in international monetary theory, foreign exchange markets, international financial management and investment analysis. It focuses on real-world problems in the sense that it provides guidance on how to solve policy issues as well as how to complete financial assignments across the globe. This in turn helps readers gain an understanding of the theory and refine the framework. This third edition of the book incorporates three new chapters, and most of the chapters from the second edition have been updated to integrate new material, data, and/or the recent developments in the areas. The book can be used in graduate and advanced undergraduate programs in international or global finance, international monetary economics, and international financial management. It is also a valuable reference book for researchers in these areas.
Download or read book Money Banking and Financial Markets in Central and Eastern Europe written by R. Matousek and published by Springer. This book was released on 2015-12-04 with total page 299 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a deep insight into the market changes and policy challenges that transition economies have undergone in the last twenty years. It not only comments on and evaluates the development of financial markets in transition economies, but also highlights the key obstacles to full integration of financial markets into the EU market.
Download or read book The Big Mac Index written by L. Ong and published by Palgrave Macmillan. This book was released on 2003-01-01 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt: PPP is one of the most widely researched areas in international finance and one of the most controversial in the theory of exchange rate determination. This book demonstrates the applications of Purchasing Power Parity in exchange rate determination as well as more practical applications of salary comparison and the cost-of living across borders. It uses The Economist's annual Big Mac Index in place of the traditional basket of services used in PPP research. The author demonstrates that this is a good solution to the index-number problem since it is readily available and more appealing as an international monetary standard. The book also shows how The Big Mac Index could have been used to predict the Asian Currency Crisis and the Mexican Peso stand-off where more traditional economic measures failed.
Download or read book Eurasian Economic Perspectives written by Mehmet Huseyin Bilgin and published by Springer Nature. This book was released on 2020-09-28 with total page 378 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents selected papers from the 26th and 27th Eurasia Business and Economics Society (EBES) Conferences, held in Prague, Czech Republic, and Bali, Indonesia. While the theoretical and empirical papers gathered here cover diverse areas of economics and finance in various geographic regions, the main focus is on the latest research concerning banking and finance, as well as empirical studies on emerging economies and public economics. The book also includes studies on political economy and regional studies.
Download or read book Handbook of International Economics written by R.W. Jones and published by North Holland. This book was released on 1984 with total page 654 pages. Available in PDF, EPUB and Kindle. Book excerpt: Textbook, research papers on international economic theory, economic policy and practice - includes a literature survey of theoretical studies in trade relations; covers evolution of economic models explaining the determinants of trade structure, capital flow, labour mobility, trade in natural resources, etc.; examines macroeconomics aspects of balance of payments, exchange rate, international monetary system, economic relations and dependence, etc. Bibliography, graphs, statistical tables.
Download or read book EU Enlargement written by Geomina Țurlea and published by ASP / VUBPRESS / UPA. This book was released on 2007 with total page 453 pages. Available in PDF, EPUB and Kindle. Book excerpt: Twenty researchers and scientists from 13 different European countries join forces to offer their insights into the development of the Information Society in their respective countries. These experts provide analyses regarding issues of technological absorption, economic growth, and cohesion across the enlarged European Union. This volume shows that the history of Information Society in these countries has mainly been about catching up under harsh economic constraints. The ongoing monitoring of these innovative challenges--and how they are addressed at a regional and national level--is an essential contribution to these countries' efforts to become world-class economies.
Download or read book Expanded EU written by Kseniya M. Khovanova and published by Rodopi. This book was released on 2008 with total page 166 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a selection of the scholarly works presented at the 2nd International Redefining Europe Conference in Prague, 2005 as a part of the Ashburn Institute's analogous initiative, the goal of which is to advance people's understanding of the future of European civilisation, and to explore the varying dynamics of transatlantic relations. This volume is a 2nd publication in the Redefining Europe Conference Series. The third manuscript will appear in print following the Renewing the Transatlantic Relationship: Prospects for Europe and the United States in an Emerging Multipolar World Conference held in Norman, OK, November 2008. This book is targeted at scholars and students in political science and related disciplines.
Download or read book The Purchasing Power of Money written by Irving Fisher and published by . This book was released on 1911 with total page 558 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Understanding National Accounts Second Edition written by Lequiller François and published by OECD Publishing. This book was released on 2014-10-20 with total page 520 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is an update of OECD 2006 "Understanding National Accounts". It contains new data, new chapters and is adapted to the new systems of national accounts, SNA 2008 and ESA 2010.
Download or read book Economics of the European Union written by Michael Artis and published by Oxford University Press. This book was released on 2007-05-17 with total page 460 pages. Available in PDF, EPUB and Kindle. Book excerpt: The new edition of this successful text analyses the current economic issues facing a rapidly changing Europe. The authors combine policy, history and data to present a global perspective of the EU, written with a range of students taking an introductory module in European Economics in mind.With new material on the economic relationship between the EU and the US, Enlargement and the Lisbon process the authors consider the changing landscape and Europe's development as a major global player. The authors use history, theory and analysis including comparative data to evaluate Economic policies ranging from the Common Agricultural Policy and Competition Policy to Social Policy and Monetary Policy and to assess issues such as unemployment and foreign aid.The contributors are drawn from a range of Universities such as Vienna, Manchester, Brussels, LSE and Purdue, as well as institutions such as the IMF and the European Central Bank.
