Quasi purchasing power parity: Structural change in the Mexican peso/US dollar real exchange rate
This paper analyzes whether the real exchange-rate of the Mexican peso/US dollar revert to a long-run equilibrium value, and whether this value is unique. We use a method for testing stationarity, that allows for an unknown number of structural breaks in the level of the series. Using a long span of...
| Autores: | , |
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| Tipo de recurso: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2003 |
| País: | México |
| Institución: | EL COLEGIO DE MÉXICO |
| Repositorio: | Estudios Económicos de El Colegio de México |
| Idioma: | inglés |
| OAI Identifier: | oai:oai.estudioseconomicos.colmex.mx:article/183 |
| Acceso en línea: | https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/183 |
| Access Level: | acceso abierto |
| Palabra clave: | exchange-rate mexican peso american dollar purchasing power C12 C13 C15 C22 F31 tipo de cambio peso dólar poder adquisitivo |
| Sumario: | This paper analyzes whether the real exchange-rate of the Mexican peso/US dollar revert to a long-run equilibrium value, and whether this value is unique. We use a method for testing stationarity, that allows for an unknown number of structural breaks in the level of the series. Using a long span of annual data covering the period 1925-1994, our results provide evidence favoring long-run Quasi-Purchasing Power Parity. In particular, we find that the real peso/dollar exchange rate has fluctuated stationarily around a 70 year long-run level, perturbed by a series of events, both domestic and external, in or around 1981. |
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