TY  - JOUR
AU  - Lyons,Richard K.
TI  - Floating Exchange Rates in Peru, 1950-54
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3775
PY  - 1991
Y2  - July 1991
UR  - http://www.nber.org/papers/w3775
L1  - http://www.nber.org/papers/w3775.pdf
N1  - Author contact info:
Richard K. Lyons
460 Michigan Ave
Berkeley, CA 94707
Tel: 510-642-1059
Fax: 510-642-4700
E-Mail: lyons@haas.berkeley.edu
AB  - I test three potentially complementary models in an effort to capture the fundamentals that underlaid the market's determination of Peru's floating exchange rate through the period 1950-54: the first is an expectational purchasing power parity (PPP) model which maintains that asset market forces were driving the exchange rate to its perceived PPP level; the second is a flexible-price monetary model; and the third is a model along the lines described by Tsiang (1957) which emphasizes world prices for Peruvian exports as a fundamental determinant. I find that the expectational PPP model not only dominates the others, but also fits quite well.
ER  -