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Table of Contents
Intro
Preface
References
Previous Books of Lawrence H. Officer
Contents
List of Figures
List of Tables
Part I Purchasing Power Parity: Origin and Use
1 Salamancans and Gerard Malynes
1.1 Salamanca School, Tudor Period
1.1.1 Salamanca School
1.1.2 Tudor Period
Notes
References
1.2 Malynes, Gerard De (fl. 1586-1623)
Selected Works of Malynes
References
2 Gustav Cassel
2.1 From Salamancans/Malynes to Cassel
2.2 The Impact of Cassel
2.3 Motivation for Cassel's PPP Theory
2.4 Quantity Theory of Money
2.5 Price-Level Concept
2.6 Absolute-PPP Theory
2.7 Relative-PPP Theory
2.8 Digression: Error Term in PPP Theory
2.9 Flexibility of PPP
2.10 Policy Implications
Notes
References
3 Purchasing Power Parity in Economic History
3.1 Introduction
3.2 Categorization of Purchasing-Power-Parity Theories
3.3 Historical Application of PPP: Premodern Periods
3.3.1 Ancient Period
3.3.2 Medieval Period
3.3.3 Sixteenth-Century Spain
3.4 Techniques of Testing PPP Theory in Economic-History Literature
3.4.1 Comparative-Static Computation
3.4.2 Regression Analysis
3.4.3 Testing for Causality
3.4.4 Nonstationarity and Spurious Regression
3.4.5 Testing for Stationarity
3.4.6 Cointegration Analysis
3.5 Price Variable in PPP Computations
3.6 Modern Period: Testing of PPP
3.6.1 Early North America
3.6.2 Bullionist Periods
3.6.3 Floating Rates-Second-Half of Nineteenth Century
3.6.4 Classic Metallic Standards
3.6.5 World War I
3.6.6 Floating Rates-1920s
3.6.7 1930s
3.6.8 Interwar Period
3.6.9 Spain-Long Term
3.6.10 Guatelmala-Long Term
3.7 Analysis of U.S. Return to Gold Standard in 1879
3.8 Establishment and Assessment of a Fixed Exchange Rate in Interwar Period
3.8.1 United Kingdom
3.8.2 France
3.9 Conclusions
Notes
References
4 Afterword to Part I
4.1 Salamancans and Gerard Malynes (Chapter 1)
4.2 Gustav Cassel (Chapter 2)
4.3 Other Studies (Chapter 3 Extended)
Notes
References
Part II Purchasing Power Parity: Empirical Studies
5 Absolute and Relative Purchasing Power Parity
5.1 The Relationship Between Absolute and Relative Purchasing Power Parity
5.1.1 Proof That the Restated PPP Theory Is Not a Truism
5.1.2 Alternative Price-Level Concepts of PPP
5.1.3 Empirical Analysis of the Strong PPP and Naive Models
5.1.4 Empirical Analysis of the Weak PPP and Naive Models
Appendix: The Data
Absolute PPP
GDP Deflator
Consumer Price Index
Notes
References
6 Law of One Price
6.1 The Law of One Price Cannot Be Rejected: Two Tests Based on the Tradable/Nontradable Price Ratio
6.1.1 Introduction
6.1.2 Law of One Price
6.1.3 Critique of Empirical Literature
6.1.4 A Model of PPP and the Tradable/Nontradable Price Ratio
Preface
References
Previous Books of Lawrence H. Officer
Contents
List of Figures
List of Tables
Part I Purchasing Power Parity: Origin and Use
1 Salamancans and Gerard Malynes
1.1 Salamanca School, Tudor Period
1.1.1 Salamanca School
1.1.2 Tudor Period
Notes
References
1.2 Malynes, Gerard De (fl. 1586-1623)
Selected Works of Malynes
References
2 Gustav Cassel
2.1 From Salamancans/Malynes to Cassel
2.2 The Impact of Cassel
2.3 Motivation for Cassel's PPP Theory
2.4 Quantity Theory of Money
2.5 Price-Level Concept
2.6 Absolute-PPP Theory
2.7 Relative-PPP Theory
2.8 Digression: Error Term in PPP Theory
2.9 Flexibility of PPP
2.10 Policy Implications
Notes
References
3 Purchasing Power Parity in Economic History
3.1 Introduction
3.2 Categorization of Purchasing-Power-Parity Theories
3.3 Historical Application of PPP: Premodern Periods
3.3.1 Ancient Period
3.3.2 Medieval Period
3.3.3 Sixteenth-Century Spain
3.4 Techniques of Testing PPP Theory in Economic-History Literature
3.4.1 Comparative-Static Computation
3.4.2 Regression Analysis
3.4.3 Testing for Causality
3.4.4 Nonstationarity and Spurious Regression
3.4.5 Testing for Stationarity
3.4.6 Cointegration Analysis
3.5 Price Variable in PPP Computations
3.6 Modern Period: Testing of PPP
3.6.1 Early North America
3.6.2 Bullionist Periods
3.6.3 Floating Rates-Second-Half of Nineteenth Century
3.6.4 Classic Metallic Standards
3.6.5 World War I
3.6.6 Floating Rates-1920s
3.6.7 1930s
3.6.8 Interwar Period
3.6.9 Spain-Long Term
3.6.10 Guatelmala-Long Term
3.7 Analysis of U.S. Return to Gold Standard in 1879
3.8 Establishment and Assessment of a Fixed Exchange Rate in Interwar Period
3.8.1 United Kingdom
3.8.2 France
3.9 Conclusions
Notes
References
4 Afterword to Part I
4.1 Salamancans and Gerard Malynes (Chapter 1)
4.2 Gustav Cassel (Chapter 2)
4.3 Other Studies (Chapter 3 Extended)
Notes
References
Part II Purchasing Power Parity: Empirical Studies
5 Absolute and Relative Purchasing Power Parity
5.1 The Relationship Between Absolute and Relative Purchasing Power Parity
5.1.1 Proof That the Restated PPP Theory Is Not a Truism
5.1.2 Alternative Price-Level Concepts of PPP
5.1.3 Empirical Analysis of the Strong PPP and Naive Models
5.1.4 Empirical Analysis of the Weak PPP and Naive Models
Appendix: The Data
Absolute PPP
GDP Deflator
Consumer Price Index
Notes
References
6 Law of One Price
6.1 The Law of One Price Cannot Be Rejected: Two Tests Based on the Tradable/Nontradable Price Ratio
6.1.1 Introduction
6.1.2 Law of One Price
6.1.3 Critique of Empirical Literature
6.1.4 A Model of PPP and the Tradable/Nontradable Price Ratio