Exchange rate misalignment: a new test of long-run PPP based on cross-country data

doi:10.4324/9781315875606-10

ABSTRACT

A new empirical procedure is formulated and implemented to test long-run PPP by using cross-country data. It is found that out of a total of 153 countries, 132 and 105 countries have achieved PPP within 20 years and ten years, respectively.