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

BOLATOĞLU N., Telatar F., Telatar E.

APPLIED ECONOMICS LETTERS, vol.16, no.1, pp.81-85, 2009 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 16 Issue: 1
  • Publication Date: 2009
  • Doi Number: 10.1080/13504850701719504
  • Journal Name: APPLIED ECONOMICS LETTERS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.81-85
  • Hacettepe University Affiliated: Yes

Abstract

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.