Series: IMF Working Papers
Author(s): Gene Leon , and Serineh Najarian
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 July 2003
Keywords: Nonlinearities, asymmetry, exchange rate, exchange rates, nonlinearity, statistics, real exchange rate,
This paper examines whether deviations from PPP are stationary in the presence of nonlinearity, and whether the adjustment toward PPP is symmetric from above and below. Using alternative nonlinear models, our resul...