Abstract
The issue of long-run purchasing power parity for the US dollar-UK sterling exchange rate during the 1920s float is re-examined, and it is concluded that a form of long-run purchasing-power parity did in fact hold for dollar-sterling during this period. The new results are also employed to gauge the degree of overvaluation of sterling relative to the imposed pre-war parity of 4.86 on its return to gold in 1925 and for 12 months afterwards.
| Original language | English |
|---|---|
| Pages (from-to) | 803-811 |
| Number of pages | 9 |
| Journal | Applied Economics |
| Volume | 24 |
| Issue number | 8 |
| DOIs | |
| State | Published - Aug 1992 |