Long-Run Purchasing Power Parity and the Dollar-Sterling Exchange Rate in the 1920's
Author | : Mr.Mark P. Taylor |
Publisher | : International Monetary Fund |
Total Pages | : 25 |
Release | : 1990-12-01 |
ISBN-10 | : 9781451940565 |
ISBN-13 | : 1451940564 |
Rating | : 4/5 (564 Downloads) |
Download or read book Long-Run Purchasing Power Parity and the Dollar-Sterling Exchange Rate in the 1920's written by Mr.Mark P. Taylor and published by International Monetary Fund. This book was released on 1990-12-01 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper replies to Ahking’s (1990) re-examination of Taylor and McMahon’s (1988) analysis of long-run purchasing power parity in the 1920s. We demonstrate that Ahking’s conclusions are only partially correct and reestablish our conclusion that, a form of long-run purchasing-power parity did in fact hold for dollar-sterling during this period. The new results are also employed to gauge the degree of overvaluation of sterling relative to the imposed prewar parity of $4.86 upon its return to gold and for 12 months afterwards.