This paper shows that the purchasing power parity puzzle is a statistical artifact produced by the fact that the long run equilibrium real exchange rate is not constant, but changes throughout time. This fact implies that the inertia coefficient has an upward bias.
CITATION STYLE
Barbosa, F. de H. (2009). A paridade do poder de compra: Existe um quebra-cabeça? Estudos Economicos, 39(3), 469–487. https://doi.org/10.1590/s0101-41612009000300001
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