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Purchasing power parity and Italy's exit from the ERM.

Publication: International Advances in Economic Research
Publication Date: 01-AUG-04
Format: Online
Delivery: Immediate Online Access
Full Article Title: Purchasing power parity and Italy's exit from the ERM.(Research Notes)(Brief Article)

Article Excerpt
Assuming that purchasing power parity (PPP) is a useful guide to the lira/DM exchange rate, the study suggests that the lira was substantially overvalued at the time of the September 1992 currency crisis. Specifically, under a simple approach to PPP, the study finds that the lira exceeded the PPP...

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