#  Purchasing Power Parity 

 



 "[A Panel Project on Purchasing Power Parity](https://www.sciencedirect.com/science/article/abs/pii/0022199695013962): [Mean-Reversion Within and Between Countries](/file_url/1215)," with Andrew Rose, [*Journal of International Economics* 40, no.1-2, February 1996, 209-224](https://www.sciencedirect.com/science/article/abs/pii/0022199695013962). NBER [WP no. 5006](https://www.nber.org/papers/w5006).

 "[Zen and](/file_url/1446) the [Art of Modern](/file_url/1445) [Macroeconomics](/file_url/1214): [The Search for](https://www.researchgate.net/profile/Jeffrey-Frankel-2/publication/239047167_Zen_and_the_Art_of_Modern_Macroeconomics_The_search_for_perfect_nothingness/links/540702d50cf23d9765a82e54/Zen-and-the-Art-of-Modern-Macroeconomics-The-search-for-perfect-nothingness.pdf)[ Perfect Nothingness](/file_url/1214)," 1990, in *Monetary Policy For a Volatile Global Economy*, W. Haraf and T. Willett, eds. (American Enterprise Institute, Washington, D.C.). Reprinted in J. Frankel, *[On Exchange Rates](https://mitpress.mit.edu/9780262061544/on-exchange-rates/)* (MIT Press), 1993.

#####  **The best statement of my Zen point (that one needs 100 years of data to reject a random walk in the RER), including a paragraph showing calculation of a priori power to reject, is the paper, "**[International...Goods Markets](https://files.stlouisfed.org/files/htdocs/publications/review/86/conf/frankel.pdf)**," as reprinted in my collection, *[On Exchange Rates](https://mitpress.mit.edu/9780262061544/on-exchange-rates/)*, 1993, page 52.**

 "[International Capital Mobility](/file_url/1216) and [Crowding Out in the U.S. Economy: Imperfect Integration of Financial Markets](http://research.stlouisfed.org/publications/review/86/conf/frankel.pdf) [or of Goods Markets?](https://research.stlouisfed.org/publications/review/1986/12/01/international-capital-mobility-and-crowding-out-in-the-u-s-economy-imperfect-integration-of-financial-markets-or-of-goods-markets)" [1986](https://research.stlouisfed.org/publications/review/1986/) in *How Open Is the U.S. Economy?*, [edited ](http://research.stlouisfed.org/publications/review/86/conf/preface.pdf)by R. Hafer (Lexington: Lexington Books), [FRB St. Louis, 33-67](https://research.stlouisfed.org/publications/review/1986/12/01/international-capital-mobility-and-crowding-out-in-the-u-s-economy-imperfect-integration-of-financial-markets-or-of-goods-markets). [NBER Working Paper 1773](http://www.nber.org/papers/w1773.pdf).

 "[The Theory of Trade in Middle Products: Extension](https://www.jstor.org/stable/1804024)," 1984, *American Economic Review,* vol.74, no.3, June, 485-487.

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 See also:- [ Purchasing Power Parity ](/what-makes-exchange-rates-move-terms/purchasing-power-parity)