01681cas a2200241 a 4500 AALejournalIMF010091 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451970166 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. The Purchasing Power Parity Criterion for Stabilizing Exchange Rates. Washington, D.C. : International Monetary Fund, 1989. 1 online resource (48 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 The use of purchasing power parity as a basis of fixing exchange rates among industrial countries, as proposed by McKinnon, is discussed and contrasted with alternative interpretations of the PPP doctrine. Major policy implications of such a regime are emphasized. Furthermore, a new technique for estimating PPP exchange rates which makes use of price pressure exerted by exchange deviation is introduced. This method is capable of solving the 'base-year' problem more satisfactorily than the traditional Cassel-Keynes methodology. Estimated yen/dollar and mark/dollar PPP exchange rates are close to estimates derived using other methods. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1989/052 Full text available on IMF http://elibrary.imf.org/view/journals/001/1989/052/001.1989.issue-052-en.xml IMF e-Library