{"title":"Triangular PPP","authors":"Peijie Wang, Fangya Xu","doi":"10.2139/ssrn.2352018","DOIUrl":null,"url":null,"abstract":"We propose a triangular PPP analytical framework in this paper, which is theoretically justified and empirically validated. The peg of the RMB to the US dollar causes a triangular PPP effect that the dollar euro exchange rate is not a function of the relative prices in the US and Euroland; instead, it becomes a function of the relative prices in PRC and Euroland. The results are supportive of triangular PPP for the dollar euro exchange rate in a three-economy world of the US, Euroland and PRC.","PeriodicalId":381709,"journal":{"name":"ERN: International Finance (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2013-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"ERN: International Finance (Topic)","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.2352018","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
We propose a triangular PPP analytical framework in this paper, which is theoretically justified and empirically validated. The peg of the RMB to the US dollar causes a triangular PPP effect that the dollar euro exchange rate is not a function of the relative prices in the US and Euroland; instead, it becomes a function of the relative prices in PRC and Euroland. The results are supportive of triangular PPP for the dollar euro exchange rate in a three-economy world of the US, Euroland and PRC.
京公网安备 11010802042870号
京ICP备2023020795号-1
分享
求助内容：
应助结果提醒方式：
扫码关注我们
