Stochastic behaviour of the real exchange rate for Jordan: a re-examination

BOLATOĞLU N., Telatar F., Telatar E.

APPLIED ECONOMICS LETTERS, cilt.16, sa.1, ss.81-85, 2009 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 16 Sayı: 1
  • Basım Tarihi: 2009
  • Doi Numarası: 10.1080/13504850701719504
  • Dergi Adı: APPLIED ECONOMICS LETTERS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.81-85
  • Hacettepe Üniversitesi Adresli: Evet

Özet

The purpose of this article is to re-examine the validity of the long-run purchasing power parity (PPP) hypothesis for Jordan. Using a Markov-switching model, we provide some evidence that the real exchange rate of Jordan is stationary during periods of low real exchange rate volatility and nonstationary during periods of high real exchange rate volatility.