IMF Staff Papers

IMF Staff Papers, Volume 50, No. 3

By Robert P Flood

November 25, 2003

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Robert P Flood. IMF Staff Papers, Volume 50, No. 3, (USA: International Monetary Fund, 2003) accessed November 23, 2024

Summary

This paper analyzes the issue of purchasing power parity using real effective exchange rate (REER) data for 20 industrial countries in the post-Bretton Woods period. The serial correlation-robust median-unbiased estimator yields a cross-country average of half-lives of deviations from parity of about eight years, with the REER of several countries displaying permanent deviations from parity. The paper analyzes integration of Africa into world trade. The high-yield spread as a predictor of real economic activity is also examined.

Subject: Currency crises, Economic sectors, Financial crises, Foreign exchange, Privatization, Purchasing power parity, Real effective exchange rates, Real exchange rates

Keywords: Africa, Cost allocation, Currency crises, East Asia, Europe, Global, Government cost, Privatization, Purchasing power parity, Quota license, Quota price, Real effective exchange rates, Real exchange rates, SP, Stabilization policy, Sub-Saharan Africa, Trade

Publication Details

  • Pages:

    204

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    IMF Staff Papers No. 2003/003

  • Stock No:

    SPIEA0032003

  • ISBN:

    9781589062030

  • ISSN:

    1020-7635