ARE THE CPI AND WPI APPROPRIATE MEASURES TO USE FOR TESTING THE PPP HYPOTHESIS?
Marilyn Miller Dutton
(Assistant Professor, School of Business, North Carolina Central University, Durham, NC 27707)
189
Abstract
This paper evaluates the commonly used CPI and WPI proxies for the real exchange rate by comparing them to new measures constructed from a different data series of traded and nontraded goods prices. The tests provide mixed evidence in favor of using the general price indexes to construct measures of the real exchange rate.
Citation
Miller Dutton, M. (1997), "ARE THE CPI AND WPI APPROPRIATE MEASURES TO USE FOR TESTING THE PPP HYPOTHESIS?", Studies in Economics and Finance, Vol. 18 No. 1, pp. 62-99. https://doi.org/10.1108/eb028736
Publisher
:MCB UP Ltd
Copyright © 1997, MCB UP Limited