Series: IMF Working Papers
Author(s): Menzie Chinn
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 September 1999
Keywords: Currencies, exchange rate, purchasing power parity, overvaluation, cointegration, exchange rates, real exchange rates, real exchange rate
The concept of purchasing power parity (PPP) is used to evaluate whether eight East Asian currencies were overvalued on the eve of the 1997 crises. The Johansen and Horvath-Watson cointegration test procedures are...