01649cas a2200253 a 4500 AALejournalIMF000614 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451960846 1018-5941 BD-DhAAL BD-DhAAL MacDonald, Ronald. Deviations of Exchange Rates from Purchasing Power Parity : A Story Featuring Two Monetary Unions / Ronald MacDonald, Tamim Bayoumi. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (17 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We examine the mean-reverting properties of real exchange rates, by comparing the unit root properties of a group of international real exchange rates with two groups of intra-national real exchange rates. Strikingly, we find that while the international real rates taken as a group appear mean-reverting, the intra-national rates are not. This is consistent with the view that while monetary shocks may be mean-reverting over the medium term, underlying real factors do generate long-term trends in real exchange rates. Mode of access: Internet Bayoumi, Tamim. IMF Working Papers; Working Paper ; No. 1998/069 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/069/001.1998.issue-069-en.xml IMF e-Library