home work questions 8
Describe how each of the following factors might explain why PPP is a better guide for exchange rate movements in the long run versus the short run:
1. transactions costs,
2. nontraded goods
The more detailed, the better
Describe how each of the following factors might explain why PPP is a better guide for exchange rate movements in the long run versus the short run:
1. transactions costs,
2. nontraded goods
The more detailed, the better