Seminar paper from the year 2009 in the subject Business economics - Investment and Finance, grade: 1,3, University of Hull, language: English, abstract: The Swedish economist Gustav Cassel developed his theory of Purchasing Power Parity (henceforth PPP) more than 80 years. Ago, and today it is still an essential part of the framework for forecasting exchange rates, which includes parity conditions in international finance. International parity conditions imply purchasing power parity, the Fisher effect, the interest rate parity theory and the expectations theory. “They are the set of equilibrium relationships which should hold between product prices, interest rates, and spot and forward exchange rates assuming a freely floating exchange system.” (Demirag and Goddard, 1994, 70) Unfortunately, these theories do not always work out in reality, especially in times of financial crisis. However, they give us a central understanding of how and why multinational business is related in the world. Sometimes, “the mistake is not always in the theory itself, but in the way it is interpreted or applied in practice” (Eitemann et.al., 2004, 133). This essay will take a detailed look at PPP, its theoretical perspective, and the empirical evidence for it. [...]

購買力平價學說被視為重要學說,兩個國家之間的匯率會隨著物價水準的調整下,趨近相似.換句話說,兩國貨幣的匯率決定於兩國貨幣購買力的比例.本研究期間以1998年1月至2019年1月共2277筆資料,研究東協創始五國印尼,馬來西亞,菲律賓,新加坡,泰國,歐元區國家,中國及台灣對美國是否符合長期購買力平價學說.本研究之匯率是以各國兌美元之匯率,物價水準以各國消費者物價指數表示.利用單根檢定,檢定資料是否為定態,Johanson共整合判斷是否符合長期購買力平價學說.實證發現東協創始五國之印尼,馬來西亞,菲律賓,新加坡,泰國,歐元區國家,中國及台灣皆符合購買力學說.進一步分析因果關係及變數自身的解釋能力.