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Equilibrium ER PPP: –Empirical evidence: Define: –Test the behavior of RER »If RER is non-stationary -> PPP does not hold »If RER is stationary -> PPP.
Documents Equilibrium ER PPP: –Empirical evidence: Define: –Test the behavior of RER »If RER is...

Slide 1 Equilibrium ER PPP: –Empirical evidence: Define: –Test the behavior of RER »If RER is non-stationary -> PPP does not hold »If RER is stationary -> PPP…

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