The Critical Analysis of the Purchasing Power Parity Theory and the Interest Rate Parity Theory

Topics: Foreign exchange market, Purchasing power parity, 1912 Pages: 2 (318 words) Published: December 2, 2010
Abuaf, N. and Jorion, P. (1990): Purchasing power parity in the long run. Journal of Finance. Vol. 45, 157- 174.

Alan M. Taylor; Mark P. Taylor, (2004), The Purchasing Power Parity debate. The Journal of Economic Perspectives, Vol. 18, No. 4. (Autumn, 2004), pp. 135-158.

Andrei Shleifer & Robert W. Vishny, (1997), The Limits of Arbitrage. The Journal of Finance. American Finance Association Press. Vol. 52, No. 1. (Mar., 1997), pp. 35-55.

Bela Balassa, (1964), The Purchasing-Power Parity doctrine: a reappraisal. The journal of political economy. The university of Chicago press. Volume 72, Issue 6 (December, 1964) Page: 584-596.

Dornbusch R., (1976), Expectations and Exchange Rate Dynamics [ J ]. Journal of Political Economy, Volume 84, December 1976, 1161 - 1176.

Fu Yong, (14, May, 2008), The conditions of Interest Rate Parity in China. Available at: [Accessed: 26, November, 2009].

Jacob A. Frenkel & Richard M. Levich, (2001), Covered interest arbitrage: unexploited profits?

Kenneth Rogoff, (1996), The Purchasing Power Parity Puzzle. Journal of Economic Literature. Vol. XXXIV (June 1996), pp. 647–668.

Lucio Sarno & Mark P Taylor, (2001), Purchasing Power Parity and the real exchange rate. Discussion Paper No. 2913, August 2001.

Michael P. Dooley & Peter Isard, (1980), Capital controls, political risk, and deviation from Interest Rate Parity. The journal of political economy. Volume 88, Issue 2 (April, 1980), 370-384.

OECD, Pacific FX Service, (27, December, 2009), Available at: [Accessed: 26, November, 2009].

Paul G. J. O’Connell, (1996), The overvaluation of purchasing power parity. Harvard University Press.

Stewart C. Myers, (1984), Finance theory and financial strategy. The institute of management sciences. January-February, 1987. Page:136-137.

Wei Shang Jin & ParsleyD C., (1995), Purchasing Power Disparity during the...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • purchasing power parity theory Essay
  • Essay about Purchasing Power Parity Analysis
  • Analyse the Purchasing Power Parity Theory and Discuss Its Applicability Essay
  • International Arbitrage and Interest Rate Parity Essay
  • Purchasing Power Parity Essay
  • Purchasing Power Parity Essay
  • purchasing power parity Essay
  • The Purchasing-Power-Parity Essay

Become a StudyMode Member

Sign Up - It's Free