Exchange rates, market efficiency and purchasing power parity: Long-run tests for the Latin American currencies

In efficient markets current prices reflect all available information. Past prices do not contain any useful information for predicting future prices or for realizing extraordinary gains. This principle, known as the weak hypothesis of informational market efficiency, has been incorporated into Purc...

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Detalles Bibliográficos
Autores principales: Edgar Ortiz, Alejandra Cabello, Raúl de Jesús, Robert Johnson
Formato: Artículo científico
Publicado: Universidad Nacional Autónoma de México 2005
Materias:
Economía y Finanzas
Emarkets
purchasing power parity
Latin America
Acceso en línea:http://www.redalyc.org/articulo.oa?id=11820075005
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-030&d=11820075005oai
Aporte de:
Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO) de Consejo Latinoamericano de Ciencias Sociales
id I16-R122-11820075005oai
record_format dspace
institution Consejo Latinoamericano de Ciencias Sociales
institution_str I-16
repository_str R-122
collection Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO)
topic Economía y Finanzas
Emarkets
purchasing power parity
Latin America
spellingShingle Economía y Finanzas
Emarkets
purchasing power parity
Latin America
Edgar Ortiz
Alejandra Cabello
Raúl de Jesús
Robert Johnson
Exchange rates, market efficiency and purchasing power parity: Long-run tests for the Latin American currencies
topic_facet Economía y Finanzas
Emarkets
purchasing power parity
Latin America
description In efficient markets current prices reflect all available information. Past prices do not contain any useful information for predicting future prices or for realizing extraordinary gains. This principle, known as the weak hypothesis of informational market efficiency, has been incorporated into Purchasing Power Parity (PPP) theory to overcome its limitations in the intertemporal analysis of exchange rate adjustments to inflationary trends. Overall, recent studies dealing with exchange rates from developed countries validate their efficiency. Research for the case of developing economies is rather limited. The present study analyzes empirically the efficiency of the exchange rates markets from 15 Latin American Countries for the period 1970-2000. Based on the enhanced PPP model, two regression analyses and a unit root test are applied.
format Artículo científico
Artículo científico
author Edgar Ortiz
Alejandra Cabello
Raúl de Jesús
Robert Johnson
author_facet Edgar Ortiz
Alejandra Cabello
Raúl de Jesús
Robert Johnson
author_sort Edgar Ortiz
title Exchange rates, market efficiency and purchasing power parity: Long-run tests for the Latin American currencies
title_short Exchange rates, market efficiency and purchasing power parity: Long-run tests for the Latin American currencies
title_full Exchange rates, market efficiency and purchasing power parity: Long-run tests for the Latin American currencies
title_fullStr Exchange rates, market efficiency and purchasing power parity: Long-run tests for the Latin American currencies
title_full_unstemmed Exchange rates, market efficiency and purchasing power parity: Long-run tests for the Latin American currencies
title_sort exchange rates, market efficiency and purchasing power parity: long-run tests for the latin american currencies
publisher Universidad Nacional Autónoma de México
publishDate 2005
url http://www.redalyc.org/articulo.oa?id=11820075005
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-030&d=11820075005oai
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AT rauldejesus exchangeratesmarketefficiencyandpurchasingpowerparitylongruntestsforthelatinamericancurrencies
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