PURCHASING POWER PARITY IN THE 1920S - EVIDENCE FOR THE SWISS FRANC

Authors
BLEANEY M
Citation
M. Bleaney, PURCHASING POWER PARITY IN THE 1920S - EVIDENCE FOR THE SWISS FRANC, Applied economics letters, 5(4), 1998, pp. 239-241
Citations number
9
Categorie Soggetti
Economics
Journal title
Applied economics letters → ACNP
ISSN journal
13504851
Volume
5
Issue
4
Year of publication
1998
Pages
239 - 241
Database
ISI
SICI code
1350-4851(1998)5:4<239:PPPIT1>2.0.ZU;2-J
Abstract
Tests of purchasing power parity (PPP) are applied to bilateral rates against the Swiss franc for the period of floating exchange rates in t he 1920s. The results confirm that the exchange rates of high-inflatio n currencies tended to move in line with PPP. For low inflation curren cies, however, there tended to be underadjustment of nominal exchange rates to relative price movements.