Exchange rate uncertainty and deviations from Purchasing Power Parity: evidence from the G7 area

Arghyrou, Michael ORCID: https://orcid.org/0000-0001-6222-5086, Gregoriou, Andros and Pourpourides, Panayiotis ORCID: https://orcid.org/0000-0002-2986-4094 2009. Exchange rate uncertainty and deviations from Purchasing Power Parity: evidence from the G7 area. [Working Paper]. Cardiff Economics Working Papers, Cardiff: Cardiff University.

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Abstract

Arghyrou, Gregoriou and Pourpourides (2009) argue that exchange rate uncertainty causes deviations from the law of one price. We test this hypothesis on aggregate data from the G7-area. We find that exchange rate uncertainty explains to a significant degree deviations from Purchasing Power Parity.

Item Type:	Monograph (Working Paper)
Date Type:	Publication
Status:	Published
Schools:	Schools > Business (Including Economics)
Subjects:	H Social Sciences > HB Economic Theory
Publisher:	Cardiff University
Date of First Compliant Deposit:	30 March 2016
Last Modified:	28 Oct 2022 10:19
URI:	https://orca.cardiff.ac.uk/id/eprint/77836

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