The term Purchasing Power Parity may date from the early twentieth
century, when it was coined by the Swedish economist Gustav Cassel,
but the underlying concept had been enjoying varying degrees of
success since its development in sixteenth century Spain. Even
towards the end of the twentieth century, and especially since the
breakdown of the Bretton Woods system of fixed exchange rates, PPP
and the stability of real exchange rates continued to be the
subject of academic debate. This volume brings together essays
covering aspects of current thinking on Purchasing Power Parity,
from the various ways in which to test for its existence, to its
appearance in different economies around the world, to examinations
of the explanations given when PPP does not appear to hold This
book was published as a special issue of Applied Financial
Economics. The academic editor of this journal is Mark P. Taylor.
General
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