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boland boland
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8 years ago
The authors state that empirical tests of purchasing power parity "have, for the most part, not proved PPP to be accurate in predicting future exchange rates." The authors then state that PPP does hold up reasonably well in two situations. What are some reasons why PPP does not accurately predict future exchange rates, and under what conditions might we reasonably expect PPP to hold?
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Fundamentals of Multinational Finance

Fundamentals of Multinational Finance


Edition: 5th
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noxx53noxx53
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7 years ago
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boland Author
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#2
7 years ago
This is awesome, thanks so much
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7 years ago
We should all be helping each other on here, so I'm happy to have helped
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