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An Investigation Into The Validity Of The Intra-Continental And Intercontinental Casselian Hypothesis (Ppp) And Uncovered Interest Rate Parity (Uip) In Southern African Development Community (Sadc) Countries A Long Run Structural Modelling Approach, Fidelia M. Gandiya
Theses: Doctorates and Masters
The current high exchange rate volatility in the face of globalization, underpinned by growing trade and financial and commodity markets liberalization has attracted the resurgence of considerable interest from both financial economists and policy makers, into the validity of international parity relationships. Using multivariate cointegration framework and long run structural modelling, this paper investigates the evidence in support of two of the parity relationships that underpin either implicitly or explicitly much of international macroeconomics. The first is the purchasing power parity (PPP) hypothesis or the theorem that there exists an invariable long-run equilibrium real exchange rate. The second is the …