IMF Staff Papers, Volume 50, No. 3

IMF Staff Papers, November 25, 2003

Source details

Canonical URL

IMF Staff Papers, Volume 50, No. 3

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Authors: Robert P Flood
• Published: November 25, 2003
• Series: IMF Staff Papers
• Volume: 50
• DOI: https://doi.org/10.5089/9781589062030.024

Summary

• 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.

Key findings and statistics

• Sample: REER data for 20 industrial countries in the post-Bretton Woods period.
• Estimation method: serial correlation-robust median-unbiased estimator.
• Cross-country average half-lives of deviations from parity: about eight years.
• Evidence: REER of several countries exhibit permanent deviations from parity.

Subjects and keywords

• Subjects: 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