2002
DOI: 10.1016/s0161-8938(02)00161-8
|View full text |Cite
|
Sign up to set email alerts
|

The real exchange rate: an alternative approach to the PPP puzzle

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
3
1
1

Citation Types

1
4
0

Year Published

2010
2010
2023
2023

Publication Types

Select...
7

Relationship

0
7

Authors

Journals

citations
Cited by 12 publications
(5 citation statements)
references
References 8 publications
1
4
0
Order By: Relevance
“…Using time series econometric methods, the paper finds that the real exchange rate bears long-run cointegrating relation with productivity differential and a demographic variable, namely, the relative size of young dependents cohort. The findings of this paper accord closely with those of previous studies (such as Corbae and Ouliaris, 1991;Lee et al, 2002;Henry and Olekalns, 2002;Darné and Hoarau, 2008) that find that Australia's real exchange rate does not show mean-reversion and economic fundamentals have permanent impact on it. The contribution of this paper is that in addition to productivity bias, it unveils another influence, namely population cohort that has a long-run permanent influence on the real exchange rate.…”
Section: Resultssupporting
confidence: 91%
See 2 more Smart Citations
“…Using time series econometric methods, the paper finds that the real exchange rate bears long-run cointegrating relation with productivity differential and a demographic variable, namely, the relative size of young dependents cohort. The findings of this paper accord closely with those of previous studies (such as Corbae and Ouliaris, 1991;Lee et al, 2002;Henry and Olekalns, 2002;Darné and Hoarau, 2008) that find that Australia's real exchange rate does not show mean-reversion and economic fundamentals have permanent impact on it. The contribution of this paper is that in addition to productivity bias, it unveils another influence, namely population cohort that has a long-run permanent influence on the real exchange rate.…”
Section: Resultssupporting
confidence: 91%
“…Productivity differentials (Lowe, 1992;Lee et al, 2002) and real interest rate differentials (Gruen and Wilkinson, 1991) have also been found to be important factors affecting Australia's real exchange rate. Recently, employing a macroeconomic balance approach Dvornak et al (2005) conclude that an increase in Australia's current account deficit is consistent with an appreciation of its real exchange rate.…”
Section: Introductionmentioning
confidence: 99%
See 1 more Smart Citation
“…The results through the method of generalized variance decompositions proved that essentials such as productivity differential elucidate a little and cannot be blamed for all the variations of the real exchange. In addition, Lee et al (2002) found some real variables, namely trade and its terms along with industry output to have long-run significant impacts on real exchange rate. However, the nominal variables, are found to be insignificantly associated with the exchange rate in the selection regions.…”
Section: Literature Context Of the Studymentioning
confidence: 99%
“…This close association has been empirically validated and it indicates that the shocks to Australian real exchange rate are permanent. A number of studies have confirmed this non-mean-reverting property of Australia's real exchange rate, such as, Corbae and Ouliaris (1991), Lee et al (2002), Henry and Olekalns (2002), Hoarau (2007 and. Despite this much supported view that Australia's real exchange rate is not mean-reverting, very recently Cuestas and Regis (2008) reignite the issue by arguing that shocks to Australia's real exchange rate is short-lived and it reverts to its mean value in the long-run.…”
Section: Introductionmentioning
confidence: 99%